A Bristol-headquartered property developer has secured £6.5m to transform a former Royal British Legion site in Weston-super-Mare into seafront apartments.
The PG Group acquired the building, which operated as the Somerset Legion House from 2007 to 2020, from the Royal British Legion last year.
The firm is now planning to build 42 one and two-bedroom apartments, with work on the conversion scheme expected to be complete by the summer of 2022.
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According to PG Group, the development has a gross development value of £10m.
Somerset Legion House opened in Weston-super-Mare in 2007 at a cost of £6.7m, but was put up for sale for £1.2m in 2020.
The Royal British Legion told BusinessLive’s sister site it had taken the “difficult decision” to close its break centre service, which employed 150 staff across four sites, including 35 in Weston.
Dave Gray, PG Group chief operations officer, said: “We’re excited to be breathing new life back into this beautiful building, creating 42 seafront apartments.
“We want to maintain the external character of the building, whilst completely transforming the interior to create homes suited to modern living. We’ve recorded strong buyer interest in the scheme and we look forward to welcoming the first residents next summer.
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PG Group secured the funding package from Paragon Development Finance, as well as an equity investment from the Housing Growth Partnership.
The deal was led on behalf of Paragon by relationship director Toby Burgess, with support from portfolio manager Joshua Mann. Advisors included JLL, MDA Consulting and Brecher LLP.
Mr Burgess said: “The Promenade enjoys a fantastic location for those that want to live by the sea yet is only 30 minutes to Bristol by train and close to the motorway network.
“The PG Group has a great track record of delivering successful schemes and we are confident this one will follow suit.”
The Housing Growth Partnership, which is backed by Lloyds Bank and Homes England, recently unveiled a new £300m fund for SME and regional housebuilders in the 海角视频. The social impact investor said the new fund would support a range of housing tenures and would help it achieve its target of supporting the development of 10,000 new homes by 2025.
Arnaud de Blay, Housing Growth Partnership investment director, added: “The PG Group has a strong reputation and experience of delivering complex developments and I am sure that Dave and his team will work tirelessly to create high-quality flats that fit such a unique seafront location.”
The PG Group was founded in 2002 and is behind a number of buildings in the South West, including The Eye and Number One in Bristol.
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