North East investment company Develop North PLC (Develop North), managed by Newcastle-based fund management specialists, Tier One Capital (Tier One), has announced proposals to provide increased access to real estate investment opportunities in the North East of England and significantly expand its financial support for businesses, housing and regeneration projects across the region.
The proposed investment policy will focus on three deployment strategies: real estate lending, as well as commercial and residential real estate investment, all with a strong regional focus. The changes reflect a growing demand for flexible, locally informed capital that can accelerate economic growth and support community infrastructure.
Since its inception in 2017, the London Stock Exchange-listed investment company has deployed more than £80 million in capital to support 39 projects, creating over 12,000 jobs and helping deliver a gross development value in excess of £275 million.
As part of the proposals, Develop North is exploring a potential fundraise to accelerate the company’s growth and provide investors with a platform to capitalise on the strong tailwinds currently benefitting the opportunity-rich North East.
The company’s expanded investment policy will enable Develop North to:
- Provide real estate loans to support housebuilding and commercial development.
- Invest in and upgrade commercial real estate assets to attract tenants and drive regeneration.
- Secure residential real estate through freehold or leasehold and to provide capacity and support to supported housing providers.
The proposed investment policy complements the investment opportunities created by the devolution agreement in May 2024 (formalised between central UK Government and the North East Mayoral Combined Authority), releasing an expected £1.4bn of investment into the region.
Supporting Tier One in managing Develop North in its next phase of growth is a highly experienced, locally embedded asset management team, including residential acquisitions and leasing specialists Homes or Houses, and commercial property investment experts Broadoak Asset Management.
The enlarged asset management team will bring deep regional insight and sector expertise, enabling Develop North to identify and execute high-quality investments that align with market opportunities and community needs.
As announced on 2nd May 2025, Develop North has also been strengthened by the recent appointment of Dr Sameer Al Ansari as Deputy Chairman. Dr Al-Ansari is an internationally respected figure in finance, investment and corporate governance, and his appointment supports the Company's ambitions to raise its international profile and drive new investment into the Company,
John Newlands, Chairman of Develop North, said: “The North East is on the cusp of transformational growth, and the private sector has a vital role to play in supporting that momentum.
“With devolution and investment frameworks now in place, the North East and Tees Valley Combined Authorities are making the region more investable than ever. As a trusted investment partner, Develop North is well-placed to ensure that the investment opportunity of the North East is open to everyone.”
Ian McElroy, Chief Executive of Tier One Capital, added: “There is a growing expectation that institutional investors, including Local Government Pension Schemes, will support investment into UK regions with real economic potential. We are witnessing the start of some real momentum in this process, with a number of globally recognised investment firms now allocating capital to the North East. With two proactive and positive metro mayors in place with strong devolution settlements, the North East is seeing increased attention from policymakers and the market alike.”