Develop North PLC (Develop North), the North East England-based investment company, today announced the publication of its prospectus (Prospectus) detailing the next phase of its growth strategy to become a £300m asset under management company, and marking the commencement of an initial £58m fundraise period, which is subject to shareholder approval.
This regional investment company aims to unlock investment, drive economic growth, support more jobs and deliver regeneration in the North East of England.
Seeking to evolve from a single asset real estate lending fund to a multi-real estate platform, the Prospectus sets out how Develop North intends, subject to shareholder approval, to build on its investment model through three deployment strategies spanning residential, commercial and real estate lending sectors.
Since its inception in 2017, the London Stock Exchange-listed company has supported more than 43 projects with a combined Gross Development Value (GDV) of more than £280m and helped support an estimated 12,000 jobs. To date, the company has deployed c.£ 90m in capital, with 16 projects in its current live portfolio.
Today’s announcement follows Develop North’s Change to Investment Policy and Potential Fundraise announcement published on 9 July 2025, which summarised the proposed investment objective and investment policy and discussed the potential fundraise.
John Newlands, Chairman of Develop North, said: “The publication of our prospectus represents a significant milestone for Develop North, setting out our proposed strategy to scale the company into a £300m multi-asset investment company and to invest in opportunities across the North East. Our proposed three-pillar deployment model, spanning residential real estate, commercial real estate and real-estate lending, will give us both diversification and resilience, and will be underpinned by a leadership team with deep regional expertise.
“We remain focused on delivering attractive, sustainable returns for shareholders whilst playing a role in the North East’s regeneration. With major inward investment, £5.15bn of devolution funding and growing institutional interest in UK regions, this is an exciting time for the North East. By providing flexible, locally informed capital, we can contribute to regional regeneration, job creation and economic growth. We look forward to engaging with existing and prospective shareholders as we enter this next phase.”
To support its growth strategy, Develop North has assembled a highly experienced team of real estate and investment specialists to deliver the fundraise and manage the future investment portfolio.
Develop North is advised by its investment adviser Tier One Capital and three specialist asset managers have been appointed to its advisory team (subject to the satisfaction of certain conditions): Homes or Houses Limited (focused on residential real estate), Broadoak Asset Management Limited (focused on commercial real estate) and Tier One Capital FM Limited (focused on real estate lending).
The enlarged asset management team will bring regional insight and sector expertise, enabling Develop North to identify and execute investments that align with its proposed investment objective and investment policy.
Investment, track record and regional economic landscape highlights:
- The proposed investment strategy is targeting a 10-11% per annum average Net Asset Value total return per annum over the next seven years.[1]
- Target dividend of 6-7% per annum of Net Asset Value on average over the same period.[2]
- Ambition to scale to £300m AUM within five years driven by investment opportunities in the North East of England.
- Proven track record with c.£90m deployed across 43 investments and gross loan IRRs averaging 9.5% on loans written and exited since June 2018.
- Long-term social impact commitments which include plans to support a further 12,000 jobs and deliver 720 supported sector homes by 2030.
- Clear, diversified deployment strategy with three core allocations (real estate lending, commercial real estate, residential real estate).
- Extensive knowledge of the real estate sector and key contacts, which provide the ability to source off-market opportunities.
- Experienced, locally embedded leadership and advisory team who bring decades of investment, real estate and governance expertise.
- North-East’s £5.15bn devolution deals and growing institutional focus on UK regional investment.
- Exposure to one of the UK’s most dynamic regional growth stories, which is supported by major inward investments across clean energy and AI.
[1] The total return figure stated is a target only and is based on a number of assumptions (including Develop North raising money pursuant to future fundraises, which is not guaranteed). There can be no assurance that this target will be met and it should not be taken as an indication of Develop North's expected future results. The total return figure is also based on Develop North utilising higher levels of leverage across the commercial and residential strategies than has historically been utilised for the real estate lending portfolio.
[2] The dividend figure is a target only and is based on a number of assumptions (including Develop North raising money pursuant to future fundraises, which is not guaranteed). There can be no assurance that this target will be met and it should not be taken as an indication of Develop North's expected future results. The dividend figure is also based on Develop North utilising higher levels of leverage across the commercial and residential strategies than has historically been utilised for the real estate lending portfolio.