CALA finance backs Staffordshire development

CALA Finance, the residential funding arm of premium residential and commercial property developer CALA Group, is fully funding a £2.33 million residential development in the Staffordshire market town of Hednesford.

The Birmingham office of CALA Finance is backing Cannock-based Damar Homes’ development of eight one- and two-bedroom apartments and 10 three-bedroom houses on the site of former garages and storage units on Stanley Road, off Green Heath Road in Hednesford.

CALA Finance will provide 100% of the funding for the development 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% of the development costs themselves. The company funds residential schemes with an end development value ranging from £1.5 million to £20 million.

Unlike other development funders, CALA Finance also provides expert advice and guidance on land acquisition, planning, costing and construction, and sales and marketing for new developments.

The new homes will be built on land overlooking open public space about one mile from the centre of Hednesford and close to Cannock Chase.

The first homes will be released for sale in June 2007 and Damar Homes expects them to appeal to local first time buyers, young families and investors. Prices for the apartments are expected to start from £105,000, with the houses starting at £140,000.

This is the ninth residential development by Damar Homes, which CALA Finance has funded and the second in Hednesford. The companies’ first joint venture development in the market town at Woodland Court was launched late last year and has already secured a number of reservations for the 32 one- and two- bedroom apartments just off Market Street.

“Hednesford is a busy, yet friendly market town close to the M6 Toll, with an on-going steady increase in house prices, as people recognise the benefits of using the new motorway to commute to work in Birmingham and beyond,” says director of Damar Homes, Andy Dace.

“This particular site has the added attraction of being on the edge of protected open public space offering attractive views,” says Damar Homes’ director Ian Marsh.

"Stanley Road will be a strong development and typical of those which we are financing across the Midlands,” says Ken Phillips, Birmingham-based managing director of CALA Finance.

“While Damar Homes is a regular client, we are always keen to hear from new developers who are looking for flexible ‘developer friendly’ funding for residential developments.

“We can give developers a decision in principle in only 24 hours, as to whether we can finance a scheme. We have funds of £120 million to spend on financing residential developments throughout the Midlands and in 2007 we are looking to more than double the 20 residential developments we funded last year.”

For more information visit Cala.co.uk.