Housing Growth Partnership, the Lloyds-backed equity investor in the UK living sector, has committed £15m of equity to a newly formed joint venture with Cayuga Homes.
The jv will deliver 300 homes for sale along England’s south coast and is HGP’s latest investment under its Regional Growth Initiative.
The jv completed its first acquisition, the Montague Quarter Shopping Centre in Worthing, in October, with HGP investing £4.2m.
Cayuga has secured planning consent for the delivery of 42 energy-efficient flats above the shopping centre’s commercial tenants, which include TK Maxx, Nando’s and HMV, as well as local shops and restaurants.
Contractor Trinity Homes will begin construction on site in January, with the scheme due to complete in Q3 2025.
Alongside HGP, Paragon Development Finance has provided the jv with a £14.5m senior acquisition and development facility to support the delivery of the scheme.
James Hutchinson, investment director at HGP, said: “This jv alongside Cayuga is the latest demonstration of our continued commitment to providing SME developers with institutional equity support, to accelerate the delivery of much-needed housing across the UK.
“This initial investment under our Regional Growth Initiative provides a blueprint for how town centre retail assets can be regenerated to meet local housing demand, in a sustainable manner, and is closely aligned with our social impact objectives.”
Steve Mountain, senior relationship director at Paragon Development Finance, added: “This is an exciting scheme that will bring fresh energy into the centre of Worthing, creating a vibrant mixed-use space of residential homes, retail and leisure. We have a strong relationship with Cayuga Homes, having worked with them on two previous schemes, and we look forward to seeing this project take shape in the coming months.”
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