Since 2013, we have provided direct lending services for our clients, both as lenders of capital and for those looking to access finance as a borrower. By identifying a need for income generating investments within personal portfolios, and a dearth of traditional finance in the property market, we create direct lending opportunities through our existing network. Our lender clients benefit from a regular income, the ongoing monitoring of projects and the security of property assets, whilst our borrower clients benefit from a personal, flexible and common-sense approach to lending at a local level. The natural evolution of this concept, to create liquidity for lenders and scale for borrowers, was the creation of Develop North PLC, which was listed on the main market of the London Stock Exchange in January 2017.
For clients with capital looking to gain exposure to our direct lending opportunities, we provide two routes; investment into Develop North PLC or by direct investment into specific projects. For those looking to access finance, we facilitate access through our facility agent capability.
Our in-house fund management team is responsible for managing the overall direct lending loan book, overseeing the ongoing management of our direct lending projects alongside the day to day requirements of managing a London Stock Exchange listed investment trust. The team is comprised of experienced professionals, ably supported through the diligence process by a small number of expert professional firms. Our team focus deployment primarily on the North East of England, the area we know and are passionate about, and both affordability and house price inflation data evidence a resilient market in any macro-economic environment. Each project is subject to a comprehensive approval process through our credit committee. For Develop North PLC projects, a further level of governance is provided through an independent board of directors, with significant experience across a number of relevant sectors, including banking, property and investment management.
A main market London Stock Exchange listed investment trust offering exposure to a portfolio of property backed projects. Develop North PLC targets a return of 6% per annum, paid quarterly, has the additional benefit that it can be held via SIPPs and ISAs, making it tax efficient, and can be purchased through all standard investment platforms. Each project is subject to a comprehensive credit and regulatory process with a preference towards the North East of England and Scotland. Tier One Capital Ltd is the appointed investment adviser for Develop North PLC.
An opportunity to gain direct lending exposure to individual property backed projects as part of a syndicate of lenders, each ranking pari-passu. The typical return is between 7% - 10% gross with projects generally running for two years. The minimum level of investment per project is £100,000. This product is restricted to High Net Worth clients or self-certified sophisticated investors.
If you have a property or land backed investment opportunity and are looking for a personal, flexible and common-sense approach to finance, our in-house fund management team are well placed to assist. Through our management of Develop North PLC and our network of high net worth individuals, we are experienced, reliable and consistent providers of private capital to property developers in the regions.