Cala Finance - the funding arm of West Midlands residential and commercial property developer Cala Group - is fully funding its second residential development in Stratford-upon-Avon for a local developer.
Stratford-based developer Temple Oak is to build eight high quality one and two-bed apartments on Shipston Road, a quarter of a mile from Stratford town centre.
Temple Oak plans to convert an existing small hotel, as well as constructing a new block of apartments in its former grounds in a development with an end value of £2 million.
Cala Finance will provide 100 per cent of the funding in return for a share of the profits.
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.
Unlike other development funders, Cala Finance also provides expert advice and guidance on land acquisition, planning, and sales and marketing of the new development, This is Temple Oak and Cala Finance's second joint venture in Stratford and the third development they have taken on together in the West Midlands.
In 2001, the successful Olivers Lock development of 14 two and three-bedroom apartments on a canal front setting on the edge of the town centre sold out in less than four months at prices up to £360,000. And in Solihull at The Tudors development, situated on Lode Lane in one of the town's prime residential areas, all 14 new apartments have already been sold at prices from £ 247,500 to £275,000.
Work on the new Stratford development has already started. With prices starting from £200,000, Temple Oak is expecting great interest from first-time buyers, young professionals and investors.
"This is an excellent location for a new development, on the edge of Stratford and close to the town centre, in an area which is becoming much sought after," said Temple Oak managing director Keith Greenall, a master craftsman and thirty- year veteran builder.
"Temple Oak is establishing a track record for building high quality, well finished apartments. From their developments it is evident that the founder is a master builder, and this is reflected in the close attention to detail," added Yvonne Hayes, Cala Finance's Birmingham-based sales and marketing adviser.
"It is also evident that owner occupiers and investors like Temple Oak's apartments as they have sold well on their other developments. Cala Finance has added its land acquisition, planning and sales and marketing expertise to Temple Oak's construction skills to produce appealing and saleable homes."