Paragon Banking Group has acquired Titlestone Property Finance Limited for around £48 million.

In addition, Paragon is acquiring a portfolio of development finance loans for circa £226 million from a series of special purpose vehicle companies (SPVs). Titlestone and the SPVs are owned by funds ultimately controlled by Oaktree Capital Management L.P.

Titlestone is a provider of residential development finance, serving a range of small and medium-sized residential property developers.

To date Titlestone has committed over £2.2 billion across more than 330 developments.

In the 12 months to June 2018 the business advanced £274 million of new funds to its developer clients. The pipeline remains at a little under £250 million.

The Titlestone team will be combined with Paragon’s existing residential development lending activities under the leadership of Robert Orr, managing director of Titlestone and support services will be provided from Paragon’s existing operations.

Nigel Terrington (pictured), Paragon’s chief executive, said: “This acquisition demonstrates our continued progress in diversifying the group’s income streams into specialist lending markets.

“The UK development finance market represents an excellent long-term opportunity and Titlestone will enable us to accelerate our growth in this area.

“The management team have an outstanding track record and the business is a strong cultural and operational fit with our existing development finance business and the wider Group.”