Paragon Development Finance has provided a £5.32 million facility for Kelham Exchange, a mixed-use development comprising 43 apartments and four commercial units on Acorn Street in Sheffield’s Kelham Island district.
The 22-month facility supports Catherall Developments Ltd, a South Yorkshire and Derbyshire-based developer with more than 18 years’ experience in the area. The company, led by Matt Catherall, has completed over £50 million of residential property in Kelham Island.
Paragon is funding the scheme at 65% loan-to-value against a gross development value of £8.248 million. The deal marks the lender’s first transaction with Catherall Developments. Works are already underway on site.
Development specifications
The scheme will deliver 31 one-bedroom and 12 two-bedroom apartments targeting residents and investors seeking city centre accommodation. Kelham Island has transitioned from its industrial heritage into one of Sheffield’s residential, cultural and leisure destinations.
The development comes as England faces a significant housing supply shortfall, with regional developments playing an increasingly important role in meeting housing demand.
Craig Seaborne, senior portfolio manager at Paragon Development Finance, who led the transaction alongside portfolio manager Anisha Thawrani, said: “Kelham Exchange is a well-located scheme in one of Sheffield’s most distinctive residential neighbourhoods. Kelham Island has seen significant regeneration over recent years and continues to attract demand from residents and investors seeking high-quality, well-connected city living.”
Regional development finance
Seaborne cited Catherall’s local track record as central to the lending decision. “We are pleased to support Catherall Developments Ltd on this project. Matt Catherall and his team have strong experience in the local market, with an established track record of delivering residential schemes in Kelham Island,” he said.
The financing decision reflects broader trends in development finance, where lenders increasingly focus on regional developers with proven local expertise, particularly as market conditions require more precise pricing strategies.
Catherall said: “Kelham Island is an area we know extremely well, and we are excited to be bringing forward another high-quality development in the neighbourhood. Kelham Exchange has been designed to meet demand for modern, well-specified apartments in a part of Sheffield that continues to grow in profile.”
He added: “Paragon has taken the time to understand the scheme, the location and our track record in the area. Their support gives us the funding certainty to progress delivery and continue investing in Kelham Island.”
The development is expected to complete within the 22-month facility period, adding to the growing residential stock in Sheffield’s Kelham Island area.