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Paragon Backs £5.32m Kelham Island Apartment Scheme in Sheffield

Paragon Development Finance has provided a £5.32 million facility for Kelham Exchange, a mixed-use development in Sheffield’s Kelham Island district. The scheme, led by Catherall Developments Ltd, will deliver 43 apartments and four commercial units on Acorn Street.

The 22-month finance facility supports Catherall Developments, a company with over 18 years’ experience in South Yorkshire and Derbyshire. The developer, led by Matt Catherall, has previously completed more than £50 million of residential property in Kelham Island. This is Paragon’s first transaction with Catherall Developments.

Paragon is funding the scheme at 65% loan-to-value, based on a gross development value of £8.248 million. Construction work is already underway, with completion expected within the 22-month facility period.

Development Details

Kelham Exchange will comprise 31 one-bedroom and 12 two-bedroom apartments, aimed at residents and investors seeking city centre accommodation. The development also includes four commercial units. Kelham Island has evolved from its industrial roots into a residential, cultural, and leisure destination in Sheffield.

Relevance for Letting Agents and Inventory Clerks

The addition of 43 new apartments in Kelham Island is set to increase the local rental stock, offering new opportunities for letting agents and inventory clerks in the Sheffield area. The scheme targets demand for modern, well-specified city living, which may attract both tenants and property investors.

The project highlights ongoing regional development activity as England faces a significant housing supply shortfall. Lenders like Paragon are focusing on regional developers with proven local expertise, reflecting broader trends in development finance.