Backing the North East | Q&A with Michelle Percy 

Place North East caught up with Percy, formerly of Newcastle City Council and now chief executive of Develop North, to discuss how lessons from the public sector and flexible regional capital can help developers deliver in a challenging market – and why the North East’s fundamentals remain strong.

Q. How would you describe Develop North’s role within the North East development market, and what appealed to you about joining the business?

A. Develop North plays a distinctive role as a regionally focused investment company, providing locally informed capital across residential, commercial and real estate lending. Our purpose is to support regeneration, job creation, and long-term economic growth in the North East, while delivering attractive, sustainable returns for investors.

What attracted me to the business was that clarity of purpose. Develop North has a strong track record since its inception in 2017, supporting more than 40 projects and helping to unlock significant economic value across the region. The opportunity now is to build on those foundations and help scale the platform in a way that stays true to its regional roots while broadening its reach.

Q. What types of schemes is Develop North currently supporting, and how do you expect that to evolve as the business grows?

A. At this stage, we are supporting a number of projects that are under development, including roadside retail schemes and light industrial opportunities, which align well with current market fundamentals. More broadly, our strategy is intentionally diversified across three pillars of residential real estate, commercial real estate and real estate lending. As the business grows and the proposed fundraise progresses, we expect that breadth to increase, allowing us to support a wider range of opportunities that reflect both market conditions and
regional priorities, while remaining disciplined in how capital is deployed.

Q. What will your immediate priorities for the business be now that you’ve taken on the role of CEO?

A. A key priority is raising awareness of Develop North and clearly articulating our proposition, within the region, across the UK and internationally. There is already a strong base of recognition built through the projects the business has supported since inception, and my focus is on building on those foundations as we enter the next phase of growth.

Alongside that, it is about ensuring the business is well positioned operationally, strengthening relationships, engaging with investors and stakeholders, and making sure Develop North remains outward-looking and deeply connected to the region it serves.

Q. What objectives are you focused on delivering over the next 12 to 24 months?

A. Over the next 12 to 24 months, the focus is on delivering against the strategy set out in the prospectus, supporting the proposed fundraise and carefully growing the investment platform, which includes generating and encouraging significant inward investment. That means building a balanced portfolio aligned to our three deployment pillars, supported by strong governance and disciplined investment
decision-making.

Equally important is continuing to demonstrate the wider value of Develop North’s role in the region, supporting regeneration, jobs and long-term economic growth alongside financial performance.

Q. You were a driving force behind major regeneration projects during your time at Newcastle City Council. What are your key takeaways from life in the public sector, now that you’ve returned to the private sector?

A. One of the biggest lessons from the public sector is the importance of collaboration and long-term thinking. Regeneration rarely succeeds in silos, and the most successful projects are those where public and private partners understand each other’s objectives and constraints.

That experience gives me a strong appreciation of how public bodies operate and how investment decisions are shaped, which is highly relevant in my role at Develop North, particularly when working with projects that sit at the intersection of public ambition and private capital.

Q. How would you characterise current market conditions for development in the North East, particularly in light of cost pressures and funding considerations?

A. Market conditions remain challenging, with cost pressures and funding considerations requiring a more measured and selective approach to development. That said, the North East continues to benefit from strong fundamentals, competitive positioning and increasing national and international interest. In this environment, the role of flexible, locally informed capital becomes even more important. Understanding local markets, working with experts, project fundamentals and risk profiles is critical, particularly when navigating uncertainty.

Q. Where do you see the most significant opportunities for growth or regeneration across the region?

A. Opportunities exist across the region, but the most successful will be those that align long-term place-based ambition with realistic delivery models. That includes well-located commercial and industrial schemes, residential development that responds to genuine local need, and projects that support the region’s evolving economic strengths.

Devolution funding and major investment commitments provide an important backdrop, but translating that momentum into deliverable projects requires the right capital, partnerships and time horizons.

Q. What are the main challenges facing developers and investors in the North East, and how is Develop North navigating those issues?

A. The key challenges include funding availability, cost inflation, planning complexity and broader market uncertainty. For many developers, navigating the lending landscape and securing capital that reflects the realities of regional markets can be difficult. Develop North’s approach is to work closely with developers and lenders, applying local knowledge and commercial discipline to support viable schemes. By remaining
flexible and engaged, we aim to help projects progress in a way that is both realistic and resilient.

Q. Looking ahead, how do you expect Develop North’s role to evolve within the region’s construction and property sector over the coming years?

A. As Develop North grows, I see the business becoming an increasingly important source of place-based capital for the North East. The ambition to scale assets under management reflects confidence in the region’s long-term potential, but growth will be measured and aligned to our core strategy. Over time, Develop North can play a broader role in supporting regeneration and economic growth, acting as a trusted investment partner with deep regional insight.

Q. And finally, if you had a magic wand and could fix one issue affecting development in the North East, what would it be?

A. The North East has strong fundamentals and clear ambition, and reducing friction in the system would help unlock more opportunities in a sustainable way. Whether it’s in planning, funding or policy, clarity and consistency would significantly improve the ability to bring forward development at pace.