JD homes secures six-figure investment with North East Property Fund
A £630k investment by FW Capital - which manages the North East Property Fund - has given a local construction company the opportunity to pursue its first multi-plot residential development.
JD Homes, the residential building division of JD Joinery and Building Services, secured the short-term loan to bring forward a housing scheme, The Stables, in Stannington.
The homes - a collection of three and four-bedroom detached properties - are aimed at families and have been released with prices starting from £325k.
Joe Dixon, managing director of JD Homes, said: “Launching a residential homebuilding division has long been an ambition of the business and the North East Property Fund helped to realise this thanks to support for The Stables development of five quality homes.
“JD Joinery and Building Services has built a strong reputation as an innovator in residential building, particularly in Passivhaus and low-energy construction techniques.
“We are bringing these specialist skills to the JD Homes brand with the aim of creating superior family homes featuring smart home technology and low-energy design as standard.”
The £10m North East Property Fund was established with the aim of kickstarting the development of small-scale property schemes and is backed by Santander and the North East Local Enterprise Partnership (LEP).
It offers loans up to £1m for residential and non-speculative commercial developments in Tyne and Wear, Northumberland and County Durham.
The Fund can provide up to 100 per cent of build costs for suitable schemes with repayment terms available up to two years.
Tony Cullen, investment executive at FW Capital, added: “The North East Property Fund was set up to bridge a gap in funding for developers just like Joe who have plenty of experience and a great track record in delivery.
“The Stables is in a popular location with good access to the A1 and has already generated significant interest from prospective purchasers.”