Cala Finance, the residential funding arm of residential and commercial property developer Cala Group, is fully funding a £3.25 million residential development which will regenerate a former industrial site in Oldbury in the Black Country.
It is backing Tamworth-based Kingswater Homes development of 14 two and three-bedroom houses and nine two-bedroom apartments in Roway Lane in Oldbury on a site formerly owned by Smith Edge Tools.
Cala Finance will provide 100 per cent of the funding for the development in return for a share of the profits.
The comany says this type of package is designed to help smaller housebuilders, contractors and first time developers to get funding for their developments which they could otherwise not get from other sources without providing up to 35 per cent of the development costs themselves.
Cala Finance also provides advice and guidance on land acquisition, planning, costing and construction, and sales and marketing.
The new development will feature four unusually large three bedroom semi-detached homes with an internal floor area of more than 1,300 sq ft, which director of Kingswater Homes and current secretary and former chairman of the Association of Midlands House Builders, Mick Alderwick, believes will be especially appealing to larger local families looking to upgrade their accommodation.
"Oldbury is an area which inspires great loyalty among its residents, so we expect most purchasers to be already living close by our new development. They will be looking for their first home or to trade up for more space and we also expect some interest from investors for buy-to-let," said Mr Alderwick.
At Cook Street in Wednesbury, Kingswater Homes is presently building nine three-bedroom houses and 15 two-bedroom apartments.