Tier One Capital (Tier One), the North East-based wealth management and property lending specialist, has announced a further £10 million of funds to help stimulate the region’s commercial and residential property markets.
In response to recent access to funding concerns expressed by developers, the substantial funds are being made available through the London Stock Exchange listed investment fund TOC Property Backed Lending Trust PLC (PBLT), which is managed by Tier One and specialises in providing finance to the property development and construction sector.
The funds will help support the government’s ambition to ‘build back better’ after the coronavirus pandemic, generating economic activity through the creation of new homes and premises for businesses.
PBLT has a current loan book of more than £27m across its portfolio of property projects. A strong pipeline of new opportunities exists and Tier One has taken the decision to release the additional £10m, which is now available to potential borrowers.
Ian McElroy, Chief Executive of Tier One, the investment adviser to PBLT said: “By releasing this substantial amount of funds we want to contribute to the renewed optimism that is starting to appear in the economy by helping to stimulate the North East property development market.
“We have a strong track record of providing high quality, experienced property developers with an alternative source of reliable, bespoke and flexible funding, which also offers longer term positive returns for investors and will assist with creating much needed residential properties and commercial developments across a range of sectors.”
Brendan O’Grady, Fund Manager of PBLT at Tier One, said: “The government has rightly identified construction as a key element of the UK’s economic recovery. These funds will help further bolster the strong pipeline of lending we have in progress, which are assisting with the increase in housing stock and the creation of jobs in the construction sector and associated supply chains.
“We continue to see many traditional lenders stepping away from the property development sector and we would be delighted to hear from credible, experienced and professional property developers in the region who may require funding.”