Develop North doubles down on home turf
The investment branch of Newcastle-based Tier One Capital has posted its H1 results, showing an increase in revenue to £1.036m with a profit of £0.49m, and has underlined its intention of focusing on opportunities created by the devolution agreement.
The total portfolio value for the company now sits at £21.6m, across 15 live projects across the North East of England and Scotland.
Of these, more than two thirds are in the North East, including a recent £2.4m, 11-month facility to support Modo Bloc’s retail scheme in South Shields.
Develop North has supported more than 40 developments across the North East and Scotland, providing more than £85m to commercial and residential schemes with a Gross Development Value of more than £275m.
The company has recently made changes to its investment policy and is looking to fundraise to expand financial support for commercial, housing, and regeneration schemes across the North East.
The creation of the North East Combined Authority last year will release around £1.4bn of investment into the region, which Develop North is hoping to get involved with.
John Newlands, chairman, 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 UK.”
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.”
