Bristol-headquartered property developer PG Group, which has been responsible for a number of upmarket apartment schemes in the city, has secured £6.5m for a project on the seafront at Weston-super-Mare.
The funding, from London-based specialist lender Paragon Development Finance, will help the group with its Promenade House project, which will include 42 one and two-bedroom apartments. 
The PG Group acquired the building last year from the Royal British Legion, which had operated as the Somerset Legion Hotel since 2007.
The hotel, which had offered breaks to former members of the armed forces and their families, was put on the market by the Royal British Legion for £1.2m.
Work on converted the former hotel into apartments, which has a gross development value of £10.5m, is now underway and expected to be completed by next summer.
PG Group has also received an equity investment from the Housing Growth Partnership, which invests in regional residential developers.
The PG Group was founded in 2002 and has developed a number of projects in the South West, most notably Number One Bristol, a 14-storey apartment secheme completed four years ago on on Lewins Mead, and The Eye, the imposing 12-storey oval-shaped building at Temple Quay.
The Paragon deal was led by relationship director Toby Burgess with support from portfolio manager Joshua Mann.
Advisors included property agents JLL, Bristol project management consultancy MDA Consulting and London law firm Brecher.
PG Group chief operations officer Dave Gray said: “We’re excited to be breathing new life back into this beautiful building, creating 42 seafront apartments.
“We want to maintain the external character of the building while completely transforming the interior to create homes suited to modern living.
“We’ve recorded strong buyer interest in the scheme and we look forward to welcoming the first residents next summer.”
“Paragon Development Finance and the Housing Growth Partnership are companies that we know can deliver.”
Toby Burgess added: “The Promenade enjoys a fantastic location for those that want to live by the sea yet is only 30 minutes to Bristol by train and close to the motorway network.
“The PG Group has a great track record of delivering successful schemes and we are confident this one will follow suit.”
Housing Growth Partnership investment director Arnaud de Blay said the company was pleased to back the PG Group in re-developing the Promenade.
“The PG Group has a strong reputation and experience of delivering complex developments and I am sure that Dave and his team will work tirelessly to create high quality flats that fit such a unique seafront location,” he said.
The Housing Growth Partnership, which is backed by Lloyds Bank and Homes England, recently unveiled a new £300m fund for SME and regional housebuilders in the UK.
The fund is expected to support a range of housing tenures and will help it achieve its target of backing the development of 10,000 new homes by 2025.
