Develop North PLC, the North East-based investment fund managed by Tier One Capital, has played a pivotal role in the redevelopment of the former Farringdon Police Station site in Sunderland, backing the project with a flexible mezzanine funding package to help bring the scheme to life.
The project, led by Newcastle-based developer Almscliffe Dhesi (AD), will deliver a 32,100 sq ft roadside retail park, featuring leading national retailers including B&M Homestore, Costa, Greggs, and Westway Vets. Once complete, the site is expected to create up to 150 new jobs for the local community.
The scheme was initiated with funding from Develop North, which provided an initial £580,000 facility, followed by a £350,000 follow-on, helping take the project through to delivery. This was delivered alongside a wider funding package that included a £6 million loan from the North East Commercial Property Investment Fund, managed by FW Capital.
Neil Creeney, Director at AD, said: “We really appreciate the support from Develop North PLC, Tier One Capital and FW Capital whose combined support demonstrates confidence in our scheme. The advice and funding from Develop North, which initiated this project, has been excellent and fundamental to the progression of this economically important scheme.”
The project is the latest in a growing list of impactful developments backed by Develop North, which offers alternative finance solutions to credible professionals and businesses across the North of England and Scotland. The fund typically provides loans of between £0.5 million and £5 million, with a focus on regeneration, job creation and sustainable growth.
Brendan O’Grady, Fund Manager at Tier One Capital, said: “We’re delighted to be working alongside FW Capital to support AD on this important jobcreating regeneration project. Develop North is a specialist in alternative lending and providing mezzanine funding is an important element of the financing structure of projects like this.”
Since its inception in 2017, Develop North has deployed nearly £100 million in capital, supporting over 40 projects, creating more than 3,200 jobs, and generating a gross development value of almost £250 million across the North and Scotland.
Develop North PLC is an investment trust listed on the main market of the London Stock Exchange and specialises in providing finance to the residential and commercial property sector.
Tier One Capital Ltd is the investment adviser and fund manager for the London Stock Exchange main market listed Develop North PLC.
www.developnorth.co.uk
www.tieronecapital.co.uk