Paragon Bank’s Development Finance division has provided £3.3 million in development finance to Litton Properties for a seven-unit trade park at Markham Vale in Derbyshire.
The transaction marks Paragon’s first completed deal since launching its light industrial lending proposition earlier this year. The bank cited strong occupational demand and limited supply of quality space in the sector as drivers for its entry into this market segment.
Development details
The funding will support construction of 31,264 sq ft of trade park space targeting trade counters, suppliers and logistics occupiers. Practical completion is scheduled for Q2 2027.
The units are designed to achieve an EPC A rating and BREEAM ‘Very Good’ accreditation, incorporating solar panels and electric vehicle charging points.
Litton Properties, which has operated since 1995, focuses on developing and operating industrial and logistics assets. The wider Markham Vale development currently houses more than 70 occupiers, including Great Bear, Bilstein Group and Smurfit Westrock, and has generated over 2,700 jobs to date.
Market context
The transaction comes as the industrial property sector continues to attract development finance, though UK property market conditions remain varied across different segments.
Mark Twelves, managing director at Litton Properties, said: “Markham Vale has established itself as a highly successful commercial destination, attracting a broad mix of occupiers thanks to its strategic location and excellent transport links. We continue to see sustained strong demand for high-quality employment space across the region.”
Neal Moy, managing director of Paragon Development Finance, noted: “Light industrial developments continue to play an important role in local communities, helping businesses expand while creating jobs and attracting investment. Our light industrial proposition was designed to support experienced developers in a market with strong long-term opportunities.”
The development finance facility represents Paragon’s expansion into the light industrial sector, which has seen sustained demand from occupiers requiring smaller-scale logistics and trade counter space. While rental dynamics vary across property sectors, industrial and logistics space has maintained relatively stable occupier demand in recent years.
