The redevelopment of a Grade II listed building in the heart of St Albans has been helped after the developers secured millions of pounds worth of finance.

Foxley Group, which is renovating a 19th century former office in St Peter's Street into new homes, has secured an £8.5 million structured finance facility from Paragon Development Finance and Apollo Capital.

The building will be converted into three new homes, including one of five bedrooms, while ten mews houses will be built in a car park behind.

The historic building has been empty since 2014, having previously been occupied by an accountancy firm for three decades.

Kevin Gregory, managing director at Foxley Group, said: "We are excited to restore this beautiful building back to its former glory and provide new homes in the centre of this vibrant cathedral city.

"We have been interested in 103-105 St Peters Street for a while; it has huge potential and I am sure will be popular with purchasers who want the benefit of a desirable location that’s within commutable distance to London.

"Working with Paragon, Apollo Capital and Arc & Co. made the whole process seamless. They are all supportive organisations that fully understand the property development market and the needs of their customers."

This Grade II listed building in St Albans is to be redeveloped

This Grade II listed building in St Albans is to be redeveloped

Paragon led the funding with a £7.8 million senior finance facility and Apollo Capital backed the deal through mezzanine funding to provide additional support for the site purchase and associated Development Agreement.

Relationship director Adrian Reeves led the deal on behalf of Paragon Development Finance, working alongside Lee Cory, director of Apollo Capital, whilst Arc & Co. was represented by asset finance advisor, Julian King.

Mr Reeves said: "This redevelopment will result in spectacular homes in the heart of St Albans, one of the most desirable places to live in the UK, bringing two striking buildings back to life. Foxley is a company we enjoy a strong relationship with and we’re pleased to have been able to support them on this latest development."