CAPITAL GAINS
Thinford Park , near Spennymoor , was developed by No Ordinary Estates and funded by the North East Commercial Property Investment Fund .
How a £ 35m fund is changing the commercial property landscape
FW Capital ’ s property fund manager Tony Cullen .
Tony Cullen , property fund manager at FW Capital , explains how commercial property developers can access finance for speculative and non-speculative sites in the North-East
Funding is the lifeblood of any development and the decrease in financial support from mainstream lenders is continuing to cause problems for commercial property developers across the region . Demand is high but the market has been held back by a severe undersupply of Grade A commercial space which is limiting inward investment and preventing many local businesses from scaling up to the next level .
Because of this , the North East Commercial Property Investment Fund has been set up to provide much needed finance . Managed by us at FW Capital and backed by the North East Local Enterprise Partnership ( LEP ), the £ 35m fund is helping developers bring forward schemes which otherwise might not be supported .
It provides investment to non-speculative and speculative developments which is something traditional lenders are unlikely to support in the current market .
It ’ s focused on creating Grade A commercial space , whether this is for offices , retail units , or manufacturing facilities .
Over the 15-year lifetime of the fund , we aim to have a huge impact on the region , creating 140,000sq metres of Grade A commercial space , 5,600 jobs and leverage in up to £ 170 million of private sector investment .
How does the North East Commercial Property Investment Fund work ? Providing loans between £ 1m and £ 7m for a maximum of five years , the fund can support a variety of developments .
These include industrial units , distribution facilities or office schemes located in the seven local authority areas of the North East LEP area : County Durham , Northumberland , Gateshead , Newcastle , North Tyneside , South Tyneside and Sunderland .
The developer doesn ’ t have to be based in the region , as long as the project is ! Schemes that qualify include refurbishment projects , mixed use developments , businesses extending and creating new offices , industrial and warehouse developments , and retail schemes such as trade counters and roadside developments .
It also supports phased developments as well as speculative schemes that need help getting off the ground .
It is available to commercial builders , construction firms and property developers for projects in the North East LEP area .
To further support developers , there is a £ 15m incentive pot administered by the North East LEP which might be available to support almost viable schemes .
Looking to the future We ’ re delighted to be in a position to support the regeneration and re-invigoration of the North-East commercial property market .
Our region provides huge opportunities for businesses wishing to invest , with great transport links by sea and air , road , and rail to all parts of the United Kingdom and the rest of the world .
Our team is in a fantastic position to help developers to rise to this challenge by providing access to funding to assist schemes that might otherwise not get out off the ground .
What about residential developments ? We have been running the very successful North East Property Fund , in conjunction with the North East LEP for several years .
Through this we can offer short-term loans from £ 250,000 up to £ 2m for residential and non-speculative commercial developments in the same geographic area .
This can provide up to 100 % of build costs for suitable schemes with repayment terms available up to two years .
Over the past seven years we have supported residential property developers with close to £ 50m of funding , facilitating over 40 developments .
To find out more if our experienced team at FW Capital can help fund your next project , please visit fwcapital . co . uk / property or email info @ fwcapital . co . uk
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