Property investment fund Develop North has launched a major £58 million fundraising drive as part of ambitious plans to significantly scale its operations in the North of England.
Ambitious Growth and Investment Strategy
In a prospectus revealed to investors, the listed fund, which is advised by Newcastle's Tier One Capital, has set a target to become a £300 million assets under management company within five years. The team has already identified a pipeline of opportunities worth over £175 million, spanning office, leisure, retail, and industrial spaces across the North East region.
The proposed strategy hinges on a three-pillar deployment model to build resilience and diversification. This model will focus on residential real estate, commercial real estate, and real-estate lending. Develop North is targeting an average net asset value total return of 10-11% per year over the next seven years, alongside a target dividend of 6-7% per annum.
Driving Regional Regeneration
Chairman John Newlands stated the publication of the prospectus marks a significant milestone. He emphasised the fund's role in the region's economic future, citing major inward investment and £5.15 billion of devolution funding. "With growing institutional interest in UK regions, this is an exciting time for the North East," Newlands said.
The fund's stated aims are to:
- Unlock investment in the North East.
- Drive sustainable economic growth.
- Support job creation.
- Deliver tangible regeneration projects.
To execute its plans, Develop North has assembled a team of specialist asset managers, including Homes or Houses Limited for residential, Broadoak Asset Management for commercial, and Tier One Capital FM Limited.
Track Record and Next Steps
Since its launch in 2017, Develop North has a proven history, having:
- Supported more than 43 projects.
- Enabled a combined gross development value exceeding £280 million.
- Helped support an estimated 12,000 jobs.
- Deployed approximately £90 million in capital to date.
The ambitious new plans are subject to shareholder approval. A general meeting to vote on the proposals is scheduled for February 18, 2026. If approved, the fundraise will mark a new chapter in the company's mission to provide flexible, locally-informed capital for the North East.
