Develop North PLC, a North East based investment fund providing loans to property developers in the North of England and Scotland, has renewed a £6.5m debt facility from Shawbrook for a further two years.
Managed by Newcastle upon Tyne-based wealth management and fund management specialists Tier One Capital Ltd (Tier One), the investment fund will utilise the facility to continue its support for residential and commercial property developments in the region and North of the border.
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.
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.
Since its launch in 2017, the London Stock Exchange-listed Develop North fund has supported the development of 33 residential and commercial projects, across the North East of England and Scotland with a combined value of £70.3m and an estimated £184m Gross Development Value (GDV).
Brendan O’Grady, Fund Manager at Tier One, said: “We are proud to continue the ongoing positive relationship with Shawbrook’s Speciality Finance team. The renewal of the revolving credit facility for the sixth year recognises the continued support the fund has from its lender as a credible and growing alternative lending source for property schemes in North East England and Scotland.
“Alongside our existing portfolio of loan facilities across 17 projects, we have a strong pipeline of future investment opportunities that will contribute to the development of new homes and commercial premises. With the assistance of Shawbrook we will continue to offer a bespoke finance provision to developers that meets the investment objectives of our shareholders.”
Phil Risby, Director, Speciality Finance at Shawbrook Bank, said: “Develop North has a strong management team and a great business strategy. Having worked with them for a number of years now and built up a good relationship, the renewal of the facility for an extended term was a natural transaction.
“We look forward to seeing the upcoming projects that Brendan and his team support, come to life as well as assisting with future opportunities for developers.”