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Paragon Lends £4.5m for Sunderland Riverside Housing Scheme

Paragon Development Finance has announced a £4.5 million revolving development finance facility for igloo’s residential scheme at Riverside Sunderland. The funding will support the construction of 34 homes across two phases, including townhouses, maisonettes, and apartments.

The development is being delivered in partnership with Sunderland City Council and Housing Growth Partnership as part of the wider Riverside Sunderland regeneration project. All homes are being built using modern methods of construction, following igloo’s Footprint process.

Phased Delivery and Energy Standards

The first phase of the scheme will deliver 18 townhouses and maisonettes within the Vaux neighbourhood. The second phase will comprise 16 apartments, based on designs from the government’s Homes of 2030 competition.

According to Paragon, the scheme is expected to meet its Green Homes Initiative criteria. This requires at least 80% of private units to achieve an EPC A rating, with the remaining homes meeting a minimum of EPC C. Qualifying developments receive a 50% reduction on loan exit fees.

Broader Regeneration Context

The Riverside Sunderland masterplan includes new homes, workspaces, leisure facilities, and public green space on the former Vaux Brewery site. The financing structure for the igloo scheme has been tailored to support phased delivery.

This is Paragon’s second development finance arrangement with igloo, following its support for the Dundashill scheme in Glasgow. Both transactions were led by relationship director Toby Burgess and portfolio manager Joshua Mann. The deal is also the third investment through Housing Growth Partnership’s strategic partnership with PFP-igloo, which is targeting delivery of over 1,200 homes across UK regional cities.

The Sunderland scheme adds to ongoing activity in regional housing markets, where rental yield dynamics and property transaction timescales remain key considerations for developers and letting agents.