Develop North PLC secures £6.5m debt facility for investment into the North
Develop North PLC, a North East based investment fund providing loans to property developers in the North of England and Scotland, has secured a £6.5m debt facility from Shawbrook.
Managed by Newcastle upon Tyne-based wealth management and fund management specialists Tier One Capital, the investment fund will utilise the facility to continue supporting residential and commercial property developments in the region.
This funding represents Shawbrook’s ongoing backing for Develop North PLC’s strategy to support the levelling up of the North through alternative lending that delivers high quality property schemes.
It also continues a strong relationship between Shawbrook and the fund, which was recently rebranded to greater reflect its focus on the North of England and Scotland.
Since its launch in 2017, the London Stock Exchange-listed fund has supported the development of 31 residential and commercial projects, across the North East of England and Scotland with a combined value of £66m and an estimated £160m Gross Development Value (GDV).
As Develop North PLC, the fund aims to attract investors and property developers of all sizes, looking to contribute to the economic regeneration of the North.
The Speciality Finance team at Shawbrook has an established track record in providing funding lines to non-bank specialist lenders across multiple sectors, including property, SME and consumer finance.
Ian McElroy, chief executive at Tier One Capital, said, “Shawbrook’s financial experience in both the Specialist Finance and property development markets has proven to be invaluable to the fund in recent years and we are delighted that we are maintaining our relationship and working with the Speciality Finance team to continue the momentum of Develop North PLC.
“This agreement is a strong endorsement of Develop North PLC’s commitment to supporting economic and community growth through property investments in the North of England and Scotland.
“We are seeing strong interest in the regions from property developers keen to bring forward residential and commercial schemes in the North. They recognise the benefits of the alternative lending option provided by Develop North PLC, which offers a bespoke finance provision that also meets the objectives of our shareholders.”
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