Housing Growth Partnership has committed £15m of equity to a newly formed joint venture with Cayuga Homes. The JV will target the delivery of up to 300 homes for sale, along England’s South Coast.

The JV already completed its first acquisition in October of the Montague Quarter Shopping Centre in Worthing, with HGP investing £4.2m. Cayuga has secured planning for the delivery of 42 energy efficient flats above the shopping centre’s commercial tenants, which include TK Maxx, Nandos, HMV as well as local shops and restaurants. Construction will begin on site in January 2024, alongside contractor Trinity Homes, 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.” 

HGP, Paragon and Cayuga Homes previously partnered to deliver a seven-story, 33-apartment, Kingsway scheme in Hove, Brighton. HGP committed £3.2m of equity, supporting Cayuga with site purchase and development. Paragon provided c. £18m of senior debt for the delivery of the scheme, which is expected to complete in Q1 2024.  

Ed Deedman, Director of Cayuga Homes, said: “Cayuga are extremely proud of our new JV with Housing Growth Partnership; we could not wish for better partners and the funding will secure the delivery of our company’s exciting pipeline of new sites across Sussex and beyond.”