The North East
The Commercial Property Landscape – How to Access Funding
Thinford Park, County Durham - developed by No Ordinary Estates and part funded by the North East Commercial Property Investment Fund.
Tony Cullen is Property Fund Manager at FW Capital and helps property developers secure investment to realise development ambitions. Here Tony talks about the North East Commercial Property Investment Fund and its role in stimulating growth across the region.
How is the current funding landscape affecting commercial property developers?
Funding is the key driver for any development and the decrease in financial support from mainstream lenders is continuing to cause problems for developers. Unless you have the cash available, you’ll need some kind of finance facility to fund your project. Over the past couple of years, the UK economy has seen increased inflationary pressures and tighter credit conditions which has impacted on the lending appetite of traditional lenders. This has had a knock on effect on the property market contributing to a severe undersupply of commercial space impacting inward investment and growth.
As a response to these conditions, at FW Capital we’ve launched a £35m North East Commercial Property Investment Fund to help bridge the gap. Managed by us and backed by the North East Local Enterprise Partnership (LEP), the fund is helping developers bring forward schemes which otherwise might not be supported.
How can people access this £35million funding pot and what are the typical criteria?
The North East Commercial Property
Investment Fund provides loans between £1 million and £7 million with terms of up to five years. Investment is available for non- speculative and speculative developments.
Schemes that qualify include refurbishment 20
projects, mixed use developments, businesses extending and creating new offices, industrial space, warehouse developments, and retail schemes such as trade counters and roadside units. It also supports phased developments as well as speculative schemes that need help getting off the ground.
Businesses that qualify for investment include commercial builders, construction firms and property developers who are seeking funding for projects across the seven local authority areas of the North East LEP: Northumberland, County Durham, Gateshead, Newcastle upon Tyne, North Tyneside, South Tyneside, and Sunderland. The developer doesn’t have to be based in the region, as long as the project is!
To further help developers, there is a £15 million incentive pot administered by the North East LEP which might be available to support almost viable schemes.
What impact will this funding have on the North East region?
We can help developers access funding to assist schemes that might otherwise not get off the ground. This means we can help to drive the regeneration and re-invigoration of the North East commercial property market to support the objectives of the North East Strategic Economic Plan. There are huge opportunities for businesses wishing to invest in the North East, with great transport links to all parts of the United Kingdom and the rest of the world.
This fund backs high-quality developments
and supports developers to build commercial properties needed to secure business investment in the region.
Over the 15 year lifetime of the fund, we aim to create 140,000sq metres of commercial space, 5,600 jobs and leverage in up to £170 million of private sector investment having a huge impact on the region!
To find out more if our experienced team at FW Capital can help fund your next project, please visit
www.fwcapital.co.uk/property or email
info@fwcapital.co.uk
COMMERCIAL PROPERTY MONTHLY 2023
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