Tier One Capital grows property portfolio despite sector challenges

An investment venture overseen by a North East wealth management firm has seen annual income increase.

The TOC Property Backed Lending Trust PLC – managed by Newcastle-based Tier One Capital – saw revenue rise in the year to November 30 as it supported property investment and development projects.

According to its full-year results, the London-listed investment company achieved annual income of £2.358 million, which was an increase on the £2.148 million recorded in 2018.

It also maintained its dividend throughout the year.

Ian McElroy, chief executive of Tier One Capital, the investment adviser to the TOC Property Backed Lending Trust PLC, said the figures were pleasing.

He also said the company retains confidence in the North East’s property sector, but added its outlook remains impacted by the ongoing coronavirus pandemic.

Ian, pictured, said: “The fund continues to provide high-quality, experienced property developers in the regions with an alternative and robust source of funding, providing the opportunity for longer term positive returns for investors.

“We continue to have confidence in the strength of the North East property market, and the quality of property developers we have in the region.

“That said, we are naturally mindful of the unknown challenges ahead as the country begins to emerge from lockdown and we are all aware that we are now in unchartered waters, with COVID-19 compounding what was already a challenging property market.

“While our priority at this time is ensuring our stakeholders remain safe and well, we remain confident our robust relationship-led approach with our borrowers will give the fund the best opportunity to minimise disruption to daily activities.

Brendan O’Grady, fund manager at Tier One Capital Ltd, added: “Although 2019 has proved to be another positive year in the progression of the fund, we remain cautious about the coming months.

“Like most other investment funds that support regional property developers, we remain diligent of the challenges ahead, but excited by the opportunities that will likely present themselves.

“This has already been evidenced by the ongoing progression in the credit quality of our loan pipeline, and we look forward to continuing to support the build-out of new housing stock and the creation of construction sector jobs, both of which remain as important as ever to the development of the North East economy.”