A £1.7m development loan to New Generation Developments is the latest move by Assetz Capital. The specialty lender has facilitated nearly £1.5bn of retail and institutional funds to UK businesses to date.
New Generation Developments Ltd, a Cardiff-based construction company, secured the loan to build nine-three-bedroom detached bungalows with garages. Set in the castle town of Kidwelly, West Wales, the Old Mill development will benefit from a variety of local amenities including restaurants, sports clubs, schools, shops, and a train station. The first phase of the development was completed in early 2021, with the remaining completions due in the autumn of 2022.
The builds will provide high-specification family homes in an attractive coastal location with excellent transport links, the companies said. More than 70 per cent of the properties have been sold off-plan, and funding for an additional phase of development is already under discussion.
The loan is the latest in a healthy pipeline of funding announcements from Assetz Capital. The lender estimates it has funded the building of around one in every 100 new build homes in the last couple of years.
“We’re delighted to release these homes on to the market for families to utilize,” New Generation Developments director Neil Dodd said. “Understanding the market requirement in light of the UK’s cultural and economic shifts is fundamental to our business. The industry is challenging developers to go that extra mile with regards to CO2reduction, so we’re proud to have delivered another eco-friendly and carbon neutral development in Kidwelly.”
NGD worked closely with Assetz Capital’s regional relationship director Tony Kear, who provided the funding package for the experienced developers.
“Assetz Capital exists to support SME house builders and developers with funding and this project completely aligns with our ethos,” Kear said. “We aim to keep tackling the UK housing crisis, and working with high quality SME property developers like New Generation Developments is crucial to achieving this goal.”