North East property fund doubles to £20m

The North East Property Fund (NEPF) has doubled to £20m following its success in stimulating housing development to create and sustain jobs in the construction market. The fund can now also facilitate loans up to £2m, double the previous limit.

The NEPF was established in 2017 by FW Capital, with support from Santander and the North East Local Enterprise Partnership (LEP), in response to demand from smaller construction and property development companies that have struggled to access development finance from traditional lenders.

The new capital, released by the North East LEP, will provide loans for residential and non-speculative commercial schemes.

Since its launch, the NEPF has invested over £17.3m in the construction of 151 new homes and the creation of more than 3,504sqm of commercial space across the region. This has created or secured 338 jobs.

Now, following increased demand and a strong pipeline of investments, delivery of the Fund has been extended by three years. Repaid funding is available for reinvestment in new development schemes and is targeting to provide £54m of development loans over its life.

FW Capital fund director Joanne Whitfield said: “We are delighted that the North East Property Fund has doubled to £20m.

“The impact of our investment so far has been remarkable, leading to the construction of new homes and commercial premises across the region, while encouraging economic growth and job creation.

“This extra £10m will allow us to support even more small-scale property schemes that would otherwise find it difficult to get the finance they need. More developers will benefit, sustaining jobs in the construction sector, which is good for everyone.”

Helen Golightly OBE, chief executive of the North East LEP, added: “The North East Property Fund is positively impacting the North East regional economy by safeguarding and creating jobs, reducing the housing shortfall and improving commercial space.

“Having a diverse housing market is vitally important to attract new investment in the region and support the goals set out in the Strategic Economic Plan of creating more and better jobs and ensuring the area is considered a great place to live, learn and do business.”

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