Member News
Develop North PLC (Develop North), the investment company managed by Newcastle-based fund management specialists Tier One Capital (Tier One), has reported a positive Net Asset Value (NAV) return from its investment portfolio in its latest interim results.
Announcing its interim trading update for six months ending 31st May 2025, London Stock Exchange-listed Develop North has reported an increase in revenue to £1.036m with a profit of £0.494m.
During current and fluctuating economic conditions, the company, which provides investors with access to North East investment opportunities, maintained its dividend strategy and made dividend payments totalling 2p per share during the six-month period. As a result, the NAV total return for the period was 2.5%.
The total value of Develop North’s portfolio now stands at £21.6m from 15 live projects across the North of England and Scotland, with over two thirds located in North East England.
In this most recent six-month period, the investment company agreed two new facilities including a £2.4m, 11-month facility to support the development of a new retail scheme in South Shields, South Tyneside, being delivered by Newcastle-based developer Modo Bloc. Develop North also agreed a £1.2m 18-month loan to finance a boutique smart hotel in Edinburgh.
Three portfolio exits were completed during the period, bringing the number of exits to 26 since the investment company was founded in 2017. Since its inception, Develop North has helped create over 12,000 jobs and supported over 40 developments with a Gross Development Value (GDV) of more than £275m.
To date the firm has provided over £85 million to help finance commercial and residential real estate schemes in North East England and Scotland.
Since this reporting period, Develop North announced proposals to change its investment policy, and a potential fundraise. The proposed fundraise seeks to provide increased access to real estate investment opportunities in the North East of England and significantly expand the firm’s financial support for businesses, housing and regeneration projects across the region.
The investment policy would complement the investment opportunities created by the devolution agreement in May 2024 (formalised between central UK Government and the North East Mayoral Combined Authority), releasing an expected £1.4bn of investment into the region.
John Newlands, chairman of Develop North, 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. Develop North and its management team stands ready to play its part over the coming months and years.”
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.”
As announced on 2nd May 2025, Develop North’s leadership team has also been strengthened by the recent appointment of Dr Sameer Al Ansari as a non-executive director and Deputy Chairman. Dr Al-Ansari is an internationally respected figure in finance, investment and corporate governance, and his appointment supports the company's ambitions to raise its international profile and drive new investment into Develop North.
