North East property market set for "substantial" boost with £10m cash injection

The North East’s commercial and residential property markets are set to get an additional multi-million pound boost.

Wealth management and property lending specialist Tier One Capital has announced a further £10m of funds to help stimulate growth in the region’s property markets.

In response to concerns expressed by developers about access to funding, the new funds are being made available through investment fund TOC Property Backed Lending Trust PLC (PBLT).

The funds aim to generate economic activity across the region through the creation of new homes and businesses premises.

Ian McElroy, chief executive of Tier One, commented: “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, added: “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.”