November 1, 2018
The aim of the £10 million North East Property Fund is to fund the development of more than 300 new homes and the development of around 4000 square metres of commercial space. It is forecast to contribute in excess of £30 million to the regional economy, creating or safeguarding over 600 local jobs.
What’s on offer: offering loans from £250,000 to £1 million for residential and non-speculative commercial developments in Tyne and Wear, Northumberland and County Durham, the North East Property Fund can provide up to 100 per cent of build costs for suitable schemes with repayment terms available up to two years.
New housing developments, office, industrial and warehouse developments and refurbishment projects are all eligible and the fixed interest rate can be rolled up during the development phase.
Helping developers pursue new opportunities:
One company that has benefited from the North East Property Fund is JD Homes, which received a £630,000 investment in order to pursue its first multi-plot residential development.
The residential building division of JD Joinery and Building Services secured the short-term loan to bring forward a housing scheme known as The Stables, in Stannington near Morpeth.
The homes, which are a bespoke collection of three and four bedroom detached properties are aimed at families and have just been released with prices starting from £325,000.
Joe Dixon, managing director of JD Homes, says: “Launching a residential homebuilding division has long been an ambition of the business and the North East Property Fund helped to realise this thanks to support for The Stables development of five quality homes.
“JD Joinery and Building Services has built a strong reputation as an innovator in residential building, particularly in Passivhaus and low-energy construction techniques. We are bringing these specialist skills to the JD Homes brand with the aim of creating superior family homes featuring smart home technology and low-energy design as standard.”
Tony Cullen, investment executive at FW Capital, says: “The North East Property Fund was set up to bridge a gap in funding for developers just like Joe who have plenty of experience and a great track record in delivery. The Stables is in a popular location with good access to the A1 and has already generated significant interest from prospective purchasers.”
North East Property Fund
The FW Capital investment team is on hand to work with interested parties to ensure any loan suits their needs. Loans are made on a commercial basis and developers need to provide company accounts, a project synopsis, a detailed cost breakdown of the project and details of how the loan will be repaid.
FW Capital can provide property development loans between £250,000 and £1 million, with repayment terms of up to 24 months, to construction and property development companies for projects such as:
• New housing developments
• New office, industrial and warehouse developments
• Refurbishment projects
• Phased development schemes
For more information, please contact Tony Cullen on 0191 269 6966
Or visit: www.fwcapital.co.uk/funds-we- manage/north-east-property- fund.aspx