TOC Property Backed Lending Trust grows portfolio to support North East property market

April 17, 2019 @ 10:11 by Chloe Holmes

The TOC Property Backed Lending Trust PLC has grown its portfolio of property backed loans as part of its strategy to support developments in the region and deliver returns to its investors.

Announcing its latest set of annual results for the year ending 30 November 2018, the London listed investment company, managed by Newcastle based wealth management firm Tier One Capital Ltd, has grown its portfolio to £27.5m, representing 15 projects. 

The company achieved income of £2.148m, an increase on £1.347m from the previous year.  It also agreed four new loan facilities to support a group of commercial and residential property developments.

These included £4.525m to Thursby Homes (Springs) Ltd to finance the development of 22 luxury flats in Low Fell, Gateshead, and £3.1m to Northumberland Ltd for the development of 13 luxury apartments and four bungalows in Morpeth.

Ian McElroy, Chief Executive of Tier One Capital Ltd, the investment adviser to the TOC Property Backed Lending Trust PLC said: “The company continues to provide high quality, experienced property developers in the regions with an alternative and robust source of funding, which is delivering positive returns to its investors. The strong focus on supporting developments in the North East demonstrates the confidence in the region and its property market.”

In its second year of trading, following its launch on the Main Market of the London Stock Exchange in 2017, the company’s portfolio has continued to perform well delivering a return of 3.1% and increasing its annual dividend to 6.75p.

 In its results the company also announced the departure of current chairman Steve Coe who will step down after the Annual General Meeting and be replaced by John Newlands, the Newcastle based former Head of Investment Companies Research at Brewin Dolphin, who was previously an investment trust analyst at Williams de Broe in the City of London.

Brendan O’Grady, Fund Manager at Tier One Capital Ltd added “We would like to thank Steve Coe for his efforts during his term as Chairman and we are confident that we can build on the first two years in operation to continue to implement the company’s investment policy and deliver the level of consistent quarterly income than many UK investors demand. We are delighted that John will be the company’s new Chairman, given the wealth of financial market experience and significant local knowledge that he’ll bring to the role.”

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