Paragon Development Finance has provided developer Thornsett a £13.1 million finance facility for the 121-room YMCA hostel for YMCA St Paul’s Group.
Thornsett is set to start with Phase 1 works shortly and is expected to be completed by summer 2023.
Phase 2, the residential development, will commence subsequently and will take a further two years. The 135-unit residential element comprises a mix of studio, one, two and three-bedroom homes.
Demolition of the existing Tower Lodge building has now been completed and will be followed by the demolition of Olympic House by the end of October 2021.
Gerard Cunningham of Thornsett commented: “This is an extremely exciting redevelopment that will result in a state-of-the-art YMCA building that will bring great benefits for the community, as well as 135 much-needed new homes in Wimbledon. “We are most satisfied that not only will this development provide new homes for first-time buyers, but the hostel will deliver high-quality accommodation for those in most need. YMCA St Paul’s Group has an association with Wimbledon that stretches back to the 1800s and we are proud to be working on a project that will extend that association.” He added: “Paragon has been the perfect partner for this project, providing a flexible finance facility and structuring the funding to reflect the various stages of the scheme.” Paragon Development Finance Relationship Director Nigel Jackson said: “This is a fantastic community project and one we are pleased to support through our finance package. “Thornsett is a well-established developer with a strong track record of successfully delivering residential schemes across the UK and overseas. We look forward to supporting the business further as they progress with the project.”