Revenues rose at a North East property vehicle which was formed to invest in developments across the North of England and Scotland.
Develop North, which is managed by Tyneside wealth managers Tier One Capital, provides loans to property developers in the region to support residential and commercial property developments. The investment company has now posted interim results for the six months to May 31, showing revenues rose to £1.036m, up from £953,000 in the comparable period in 2024.
Pre tax profit fell from £605,000 to £494,000. As of May 31 it had total assets of £23.077m, up from £21.134m, and shareholder funds stood at £19.93m, up from £19.871m. Net asset value per ordinary share stood at 79.79p, up from 79.55p.
The company said that, despite current and fluctuating economic conditions, it maintained its dividend strategy and made dividend payments totalling 2p per share during the six-month period. As a result, the NAV total return for the period was 2.5%.
The total value of Develop North’s portfolio now stands at £21.6m from 15 live projects across the North of England and Scotland, with over two-thirds in the North East. During the six months Develop North agreed two new facilities including a £2.4m, 11-month facility to support the development of a new retail scheme in South Shields, South Tyneside, being delivered by Newcastle-based developer Modo Bloc. It also agreed a £1.2m 18-month loan to finance a boutique smart hotel in Edinburgh.
Three portfolio exits were completed during the period, bringing the number of exits to 26 since the investment company was founded in 2017. Since its launch Develop North says it has helped create over 12,000 jobs and supported over 40 developments with a Gross Development Value (GDV) of more than £275m.
To date the firm has provided over £85m to help finance commercial and residential real estate schemes. Since the period end, Develop North has announced proposals to change its investment policy, and a potential fundraise.
The proposed fundraise seeks to boost access to real estate investment opportunities in the region and also significantly expand the financial support it offers for businesses, housing and regeneration projects across the region.
John Newlands, chairman of Develop North, said: “For Develop North and its shareholders, not to mention the North East of England, these are exciting and potentially transformative times. In the nearer term, the intention is to continue the process of creating and managing a diversified portfolio of fixed rate loans secured over land and, or, property, predominantly but not exclusively in our local region here in the North East.
“Whatever the external backdrop, people will always need houses. Bank and building societies will also always need to offer mortgages to millions of people to make their own businesses work. Last but not least, there is widespread agreement that there is a crucial shortage of housing stock across the Ƶ. Develop North and its management team stands ready to play its part over the coming months and years.”
Brendan O’Grady, fund manager at Tier One, the investment adviser to Develop North, said: “The first half of 2025 has seen solid progress and continued demand for flexible, regional investment solutions. As we look ahead, we believe the proposed changes to the investment policy mark the beginning of a transformative period for Develop North.
“By broadening our scope, we can further strengthen our support for high-quality investment opportunities across the North East, with a sharper focus on driving regeneration, creating jobs, and supporting growth in communities that need it most.”
