Funding helps unlock 34-home Sunderland scheme

A new finance package has been secured to support the next phase of a sustainable housing development at one of the UK’s largest city-centre regeneration projects.

Paragon Development Finance has provided a £4.5 million revolving finance facility to regeneration specialist igloo to help deliver 34 new homes at Riverside Sunderland.

Built in two phases, the development will include a mix of two to four-bedroom townhouses, maisonettes and apartments.

Designed using modern methods of construction, the homes will follow igloo’s Footprint® framework, which prioritises sustainability, community and wellbeing.

Phase one will deliver 18 townhouses and maisonettes within the Vaux neighbourhood, while phase two will provide 16 apartments based on designs developed through the Government’s Homes of 2030 competition.

All homes will be built to high energy-efficiency standards, with a focus on low carbon construction, accessibility and creating connected communities.

Pete Conboy, project director at igloo, said: “This is a landmark residential development within the ambitious Riverside Sunderland masterplan, transforming the former Vaux Brewery site into a vibrant, future‑ready urban community. 

“With Paragon and HGP’s support, igloo is delivering 34 new and much-needed city centre homes, arranged across two carefully planned phases, each designed to create a new benchmark for sustainable and contemporary urban living.”

Delivered in partnership with Sunderland City Council and Housing Growth Partnership, the scheme forms part of the wider Riverside Sunderland regeneration programme, which will create new homes, commercial space, leisure facilities and public green spaces across three city-centre neighbourhoods.

The development is also expected to qualify for Paragon Development Finance’s Green Homes Initiative, which supports developers building highly energy-efficient homes.

The deal marks the second time Paragon has supported an igloo development, following its involvement in the award-winning Dundashill regeneration project in Glasgow.

Toby Burgess, relationship director at Paragon Development Finance, added: “We are pleased to be supporting igloo once again following the success of Dundashill, and to play a role in the delivery of Riverside Sunderland. 

“This is a well‑considered scheme with strong sustainability credentials, delivered by a developer with a proven track record in complex urban regeneration. 

“The structure of the facility has been tailored to support the phased delivery of the homes, and we look forward to continuing our relationship with the igloo team as the development progresses.”

Michelle Williams, project manager at igloo, added: “Paragon has shown a clear understanding of and support for our approach and ambitions, and the team’s support – particularly with its Green Homes Initiative – enables us to move confidently into delivery at this important site.”

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