Develop North, a North East-based investment fund, has renewed a £6.5m debt facility from Shawbrook for a further two years.
Managed by wealth management and fund management specialists Tier One Capital, the investment fund will use the facility to support residential and commercial property developments.
The funding demonstrated Shawbrook’s continued support of Develop North, and its strategy to support the levelling up of the North through alternative lending.
Phil Risby, director, speciality finance at Shawbrook Bank, said: “Develop North has a strong management team and a great business strategy.
“Having worked with them for a number of years now and built up a good relationship, the renewal of the facility for an extended term was a natural transaction.”
He added: “We look forward to seeing the upcoming projects that Brendan and his team support, come to life as well as assisting with future opportunities for developers.”
Since its launch in 2017, Develop North has supported the development of 33 residential and commercial projects across the North East of England and Scotland, with a combined value of £70.3m.
Brendan O’Grady, fund manager at Tier One, said: “We are proud to continue the ongoing positive relationship with Shawbrook’s Speciality Finance team.
“The renewal of the revolving credit facility for the sixth year recognises the continued support the fund has from its lender as a credible and growing alternative lending source for property schemes in North East England and Scotland.”
He added: “Alongside our existing portfolio of loan facilities across 17 projects, we have a strong pipeline of future investment opportunities that will contribute to the development of new homes and commercial premises.
“With the assistance of Shawbrook we will continue to offer a bespoke finance provision to developers that meets the investment objectives of our shareholders.”
