Develop North PLC looks to build after securing £6.5 million support

An investment fund supporting North East property developers has been handed a £6.5 million boost.

Develop North PLC has secured a debt facility with Shawbrook.

Bosses say the partnership will help Develop North’s vision “to support levelling-up through alternative lending that delivers high-quality property schemes”.

Managed by Newcastle-based wealth and fund management firm Tier One Capital, the London Stock Exchange-listed fund has supported 31 residential and commercial projects across the North East and Scotland since its 2017 launch, with a combined value of £66 million.

Ian McElroy, Tier One Capital chief executive, 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 we are maintaining our relationship 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.”

Phil Risby, Shawbrook director of speciality finance, added: “We’ve worked with Ian and his team for a few years and believe that with their solid experience in the sector, our funding will enable the team to deliver on their strategy and make a positive impact.”