Paragon Bank’s Big Move in the Build to Rent Game

Hey everyone, check this out! Paragon Bank’s Development Finance division is stepping up its game by providing up to £35m to support the acquisition and development of institutional-grade Build to Rent schemes. That’s a big move! They’re all about helping out with the whole lifecycle of these schemes, from snagging the site to getting it built, rented out, and even offering a short-term stabilisation facility. And get this, they’re not just stopping there – they’re also backing the developers to keep the scheme after it’s done, so they can cash in on the rental market growth. Smart, right?

Neal Moy, the big boss at Paragon Development Finance, says they’re all about supporting experienced residential developers and making a difference in the rental market. They’re not following the typical funding model where the developer takes on most of the risk and has limited upside benefit. Instead, they’re shaking things up by letting the developer hold onto the scheme after it’s all done and dusted, so they can rake in that sweet, sweet income. Nice one, Paragon!

With the Build to Rent market on the rise in the UK, Paragon is jumping in to provide much-needed housing. They’re all about giving the traditional build-to-sell model a run for its money. The usual funding model for Build to Rent is either forward-funded or forward-purchase, but Paragon is changing the game by offering a different approach that gives developers more control and potential for growth. It’s all about adapting to the changing needs of the UK’s population, and Paragon is right there in the mix, ready to make a difference.

Simon Dekker, the Senior Relationship Director at Paragon Development Finance, is all in on this move. He believes that the Build to Rent market is the way forward and that it’s time for Paragon to bring their expertise and support to the table. It’s a bold step, but it’s one that’s set to make a real impact on the housing market in the UK. Go on, Paragon!