North East property firm Atha Developments is set to kickstart work on a new 50-bed student studio apartment block in Middlesbrough, after securing a £2.1m funding package from Lloyds Bank.
Founded in 2011, Atha Developments is run by identical twins Tom and Jack Atha, and is one of the biggest private providers of accommodation for students across Teesside, as well as a developer of high-quality homes. Over the past nine years, they have provided homes to over 100 students, families and young professionals across their five developments.
The development loan from Lloyds Bank will fund construction of Atha Developments’ latest project Dorman House, in Middlesbrough, which has a total development value of £3.5m. With work slated to begin early this year, following an 18-month build, the development will open its doors in summer 2022.
The team also plans to increase its headcount from three to five over the next 12 months, recruiting a tenant liaison officer and marketing assistant, to help them meet growing demand.
Lloyds Bank has worked with Atha Developments since 2014 when it provided a £500,000 development loan to support the construction of two luxury houses in Darlington, and a £2.5 million facility in 2018 for the development of St. James Studios, a 60-bed student apartment block in Middlesbrough.
Atha recorded revenues of £650,000 in the 2019/20 financial year, with turnover expected to increase to more than £1 million by 2022.
Tom Atha, co-founder of Atha Developments, said: “The team at Lloyds Bank has played a key part in our growth over the past six years, providing the flexibility we needed to deliver increasingly ambitious developments.
“Their backing has not only helped us to progress with our next development during a challenging time for the industry but means we can invest in new talent as we grow. With their support, we have also been able to expand into more community-focused projects. We are planning to begin work on a refuge centre in Teesside for women and children, and those who have been made homeless.”
Mike Gascoigne, relationship director for Lloyds Bank, said: “We have stood by the side of the team at Atha Developments as they’ve taken their business from strength to strength over the last six years. The success they have achieved is testament to the exceptional quality of their properties, coupled with the support they provide to their tenants, both leading examples of industry best practice.
“We’re committed to supporting businesses like Atha Developments, helping to nurture their growth, support job creation and boost the North East regional economy.”