Paragon backs Chester care home

North Bay Group has secured a £13.3m facility from the bank’s development finance operation to support delivery of a 75-bed development off Boundary Lane, taking it through construction and fit-out.

The loan provided an initial advance against the land and will support the full development of the scheme.

Once complete, the scheme will deliver a care home providing residential and nursing care. All bedrooms will be fitted with private wet rooms, with the development targeting an EPC A rating.

Construction began in the first quarter of this year and is expected to complete in late 2027. North Bay is working in partnership with Highgate Care.

Paragon pointed to the underlying fundamentals of delivering for an ageing population, in a borough where more than 20% of residents are aged 65 or above.

This is Paragon’s first completed deal with North Bay, with a further scheme already approved and three additional opportunities progressing through the pipeline.

Adrian Reeves, senior relationship director at Paragon Development Finance, said: “Delivering modern, fit-for-purpose care homes is critical to meeting growing demand in areas with an ageing population. Chester and the wider Cheshire region demonstrate clear long-term demand fundamentals, supported by population growth and a rising proportion of older residents.

“North Bay combines development expertise with an established operating platform, which is a strong foundation for schemes of this scale. We are pleased to support this first transaction, with more in the pipeline, and look forward to building on this relationship.”

North Bay Group was established in 2007 and specialises in developing and operating care homes, now operating 48 facilities across the UK, totalling over 2,500 beds.

Richard Hoggart, chief executive of North Bay Group, said: “This development represents another significant milestone for North Bay Group as we continue to expand our portfolio of high-quality care homes across the North of England. Chester is a location with strong demographic demand and an increasing need for modern, purpose-built care environments.

Hoggart added: “We are delighted to be working with Paragon Development Finance on this project. Their understanding of both the development and operational aspects of the care sector has helped create a funding solution that supports our ambitious growth plans, and we look forward to building on this relationship as we bring forward further schemes in the future.”