An investment fund launched four years ago to grow North East property projects has released a £10m cash pot to help stimulate the market.
Newcastle-based wealth managers Tier One Capital first listed the TOC Property Backed Lending Trust PLC (PBLT) on the London stock exchange in January 2017, with plans to grow its fund to invest in a raft of regional property projects.
Now the firm is to release £10m of funds, which are available to potential borrowers, to act a catalyst within the North East commercial and residential property markets.
Tier One Capital said it is making the funds available through the listed fund, in response to recent access to funding concerns expressed by developers.
It said the funds will help support the government’s ambition to ‘build back better’ after the coronavirus pandemic, generating economic activity through the creation of new homes and premises for businesses.
PBLT has a current loan book of more than £27m across its portfolio of property projects and a strong pipeline of new opportunities exists.
Ian McElroy, chief executive of Tier One, the investment adviser to PBLT, said: “By releasing this substantial amount of funds we want to contribute to the renewed optimism that is starting to appear in the economy by helping to stimulate the North East property development market.
“We have a strong track record of providing high quality, experienced property developers with an alternative source of reliable, bespoke and flexible funding, which also offers longer term positive returns for investors and will assist with creating much needed residential properties and commercial developments across a range of sectors.”
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Brendan O’Grady, fund manager of PBLT at Tier One, said: “The Government has rightly identified construction as a key element of the 海角视频’s economic recovery.
“These funds will help further bolster the strong pipeline of lending we have in progress, which are assisting with the increase in housing stock and the creation of jobs in the construction sector and associated supply chains.
“We continue to see many traditional lenders stepping away from the property development sector and we would be delighted to hear from credible, experienced and professional property developers in the region who may require funding.”