Northumberland Developer Clinches First Loan for North East Property Fund
A developer in Northumberland is the very first business to successfully clinch a property fund worth £10m. The loan is designed to support property development and construction projects that are of a smaller scale in the North East.
W Brown & Son from Thropton near Rothbury has commenced work on constructing bungalows with three bedrooms after receiving funds worth £750,000 from North East Property Fund. The family-run company has also started the conversion of the office of a former builder in its village.
North East Property Fund was created to help extend assistance to SME or small to medium-sized companies that are involved in property development and construction. There is a strong demand from the small and medium players when it comes to financing especially since many of them are unable to get access to mainstream financing from the traditional financial sources. The North East Property Fund is managed by FW Capital, an investment firm.
It has been reported that North East LEP and Santander are also backing the fund. It is designed to extend loans ranging from £250,000 up to £1 million for developments that are non-speculative commercial in nature or residential. It has since focused its attention in the County Durham, Northumberland, and Tyne & Wear areas.
This new development that W Brown & Son is undertaking is just one among the latest in a series of projects that the company has constructed in Thropton. The firm has been based in the area since its founding in 1913. These properties are set for occupancy early next year.
W Brown & Son’s project manager Andy Lowe stated that the site owners were already planning to go into retirement. They have also deemed the setting to be an ideal location where they can further establish their community presence in a village that they know very well.
Various financing solutions were looked into before commencing the scheme. FW Capital showed interest which made them easily stand out as the appropriate choice. He also stated that the process to get the loan submitted and then approved was very smooth. The cost involved also makes economic sense.
He noted how North East Property Fund helps offer a good choice for developers that are more on the smaller-scale side to have the chance to secure projects that usually will not attract the financing that they need. He also quoted that the opportunities that the financing provider offers are well worth a closer look into.
It should be noted that North East Property Fund operates commercially. The returns that they get are reinvested to other future projects. It also has a potential of being able to provide a total of £30 million in the next five years for smaller developers.
FW Capital’s fund manager Joanne Whitfield stated that the fund is expected to tackle the present need to get more homes built across the County Durham, Northumberland, and Tyne & Wear area. This should also help drive even better economic growth into these places.