en.Wedoany.com Reported - Paragon Development Finance has provided £5.32 million in financing for the Kelham Exchange mixed-use development on Acorn Street in Sheffield's Kelham Island district. The project plans to build 43 apartments and four commercial units.

This 22-month financing supports Catherall Developments Ltd in advancing the project. The company, headquartered in South Yorkshire and Derbyshire and led by Matt Catherall, has completed over £50 million in residential projects in the Kelham Island area with more than 18 years of operational experience.

Paragon funded the scheme at a 65% loan-to-value ratio based on a total development value of £8.248 million. The deal marks the first collaboration between Paragon and Catherall Developments. Site work has already commenced.

This financing decision reflects a broader trend in development finance: lenders are increasingly focusing on regional developers with proven local expertise against a backdrop where market conditions demand more precise pricing strategies.

According to plans, the project will deliver 31 one-bedroom and 12 two-bedroom apartments, targeting residents and investors seeking city-center accommodation. Kelham Island has transformed from its industrial heritage into one of Sheffield's residential, cultural, and leisure destinations.

Craig Seaborne, Senior Portfolio Manager at Paragon Development Finance, led the deal alongside Portfolio Manager Anisha Thawrani. Seaborne said: "Kelham Exchange is a well-located project in one of Sheffield's most distinctive residential areas. In recent years, Kelham Island has undergone significant regeneration, continuing to attract residents and investors who demand high-quality, well-connected urban living." He added that Catherall's local track record was central to the lending decision.

Matt Catherall said: "Kelham Island is an area we know very well, and we are delighted to bring another high-quality development to this community. Kelham Exchange is designed to meet the demand for modern, well-specified apartments, and this part of Sheffield continues to grow in profile." He added that Paragon, through a deep understanding of the project, location, and the company's record in the area, provided the funding certainty needed to advance delivery and continue investing in Kelham Island.

This development comes at a time when the UK faces a severe housing supply shortage and is expected to be completed within the 22-month financing period, thereby adding to the growing residential stock in the Kelham Island area.

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