Housing Growth Partnership (HGP) has committed c. €17.3m of equity to a newly formed joint venture (JV) with Cayuga Homes (Cayuga). The JV will target the delivery of up to 300 homes for sale, along c and is HGP’s latest investment under its Regional Growth Initiative (RGI) model.
The JV completed its first acquisition, the Montague Quarter Shopping Centre in Worthing, in October, with HGP investing c. €4.8m. 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, alongside contractor Trinity Homes, with the scheme due to complete in Q3 2025.
Alongside HGP, Paragon Development Finance (Paragon) has provided the JV with a €16.7m senior acquisition and development facility to support the delivery of the scheme.
James Hutchinson, Investment Director at HGP, commented: “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.”
Ed Deedman, Director of Cayuga Homes commented: “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.”
Steve Mountain, Paragon Development Finance Senior Relationship Director, 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; we look forward to seeing this project take shape in the coming months.”
Image provided by FTI Consulting.