February 2, 2021 @ 8:26 by Richard Dawson
The North East Property Fund has reached the investment milestone of £10 million, providing funding to help kickstart the development of small-scale property schemes throughout the region.
Managed by FW Capital, the fund was established in response to demand for smaller construction and property development financing.
Backed by Santander and the North East Local Enterprise Partnership (LEP), the fund recycles investments and is now in a position to reinvest returns into future projects, with the aim of providing more than £30 million over its lifecycle.
The North East Property Fund was founded in March 2017 and has supported 20 property developers with the construction of 96 new homes and nearly 38,000sq ft of commercial space.
More than 220 jobs in the construction sector have also been created or safeguarded as a result of the fund.
FW Capital offers development funding to SME house builders and property development companies to bring forward residential and non-speculative commercial development projects in the North East LEP area.
Tony Cullen, investment executive at FW Capital, said: “It is fantastic to have reached such an important milestone for the North East Property Fund, with £10 million having been invested to support the development of small-scale property schemes, which may otherwise have struggled to get the finance they need.
“The impact of our investment has been seen in residential and commercial schemes as far North as Berwick and as far South as Barnard Castle.
“As well as new homes and commercial premises, the funding has stimulated economic growth and created jobs.”
Andrew Moffat, chair of the North East LEP Investment Board, said: “The North East Property Fund has made a really positive difference by unlocking finance for smaller property developers.
“We are proud to support the fund as it helps meet the need for more high-quality residential and commercial properties across the North East, driving economic growth and creating jobs for our region.”