A joint venture of BBS Capital, Wavensmere Homes and Cedar Group has secured £42.9m of development finance from Urban Exposure to fund a 474-home scheme in Derby.

BBS Capital previously advised the other two parties on the £150m Nightingale Quarter scheme, but has now formalised its place in the joint venture. BBS Capital co-founder Nick Spencer said the group was actively seeking further residential sites in major cities, particularly in the Midlands.

The Derby development will comprise 349 apartments and 125 townhouses over 18 acres, and will deliver its first homes by the end of September. Two-bed property will start at £185,000, while three-bedroom properties will start at £220,000.

James Dickens, managing director of Wavensmere Homes, said: “This is an incredibly exciting development for us to be driving as it is not just one of our largest to date but is also of massive historical significance. We have worked with BBS in the past, so for them to come onboard with the Nightingale project is huge for us and for the project.”

The deal takes Urban Exposure’s lending in the Midlands to more than £150m in the past 18 months.