Paragon Development Finance has provided a £12.5m facility to SME developer BQ Properties (St Albans) Limited for a mixed-use scheme at 67-69 St Peter’s Street in St Albans city centre. The 22-month facility will fund the construction of 34 residential units and three commercial units, with a projected gross development value of approximately £23.5m.
The development finance package covers build costs, professional fees, marketing costs and interest throughout the construction period. Boom Construction, the developer’s in-house main contractor, will deliver the scheme comprising one, two and three-bedroom apartments across two neighbouring plots. The units will include air source heat pumps, photovoltaic panels and water waste heat recovery systems.
Location and connectivity
The St Peter’s Street site is located within walking distance of St Albans City and St Albans Abbey railway stations, with direct services to London St Pancras in under 20 minutes. The M25 and M1 motorways are accessible by car. According to Mark Quinn, director at Aldenham Residential, the scheme “brings forward homes and commercial space in a way that aligns with and complements the existing urban fabric.”
This marks the second scheme Aldenham Residential has financed through Paragon, following the completion of Rosecroft Close, a nine-home development in Bovingdon. The facility was arranged by senior relationship director Adrian Reeves and senior portfolio manager Lilly Sargeant at Paragon Bank.
Market context
The transaction comes as new build property prices face pressure in several UK regions, though St Albans remains one of the South East’s stronger residential markets. Reeves noted the developer’s “proven delivery record” in structuring the facility to support the build through to completion.
Oliver Clegg, managing director at Boom Construction, described the site as “complex” and “constrained”, requiring “careful planning, coordination and quality delivery throughout.” The deal was introduced to Paragon by Mike Gaffney, director of GAP Funding, who described it as “a complex scheme” requiring a “tailored funding outcome.”
The development adds to the pipeline of residential units in Hertfordshire’s property market, which continues to attract development finance despite broader challenges facing the UK property sector. The scheme is scheduled for completion within the 22-month financing period.
