Tier One Capital secures additional £ 6.5million funding for investment fund

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Northeastern wealth manager Tier One Capital has secured a £ 6.5million revolving credit facility from Shawbrook Bank for TOC Property Backed Lending Trust PLC (PBLT).

The credit facility will help ensure that the listed fund has the necessary capital resources to continue supporting residential and commercial real estate developers in the North and Scotland.

The new agreement strengthens the ongoing relationship between Shawbrook Bank and PBLT, which recently unveiled its latest investment strategy.

PBLT shareholders recently voted overwhelmingly to give the fund more flexibility to support property developers, particularly in the North East and Scotland.

A key priority in its updated investment strategy is to improve the ability of home builders in the North East and Scotland to meet the government’s targets of building 300,000 new homes each year.

Shawbrook Bank has an established track record of lending to property developers and announced earlier this month that since launching its development finance five years ago it has provided £ 1billion in support financial to 230 individual projects, providing 3,500 residential houses and apartments. , over 600 business units and 1,000 student rooms.

Ian McElroy, CEO of Tier One Capital, said: “Shawbrook’s considerable experience in the real estate development industry makes them the ideal partner as we respond to a significant increase in the industry.

“There is also an appetite from investors, who have accumulated significant financial resources during the economic break caused by the Covid pandemic, to support real estate developments, especially in the residential sector in the current climate.

“Through our collaboration with a high caliber financial institution, such as Shawbrook Bank, we are able to provide a financial structure that meets the objectives of LTBP shareholders.

PBLT has defined a new sustainable dividend policy, which aims to provide 4p per share per year for shareholders, with the possibility of an additional end-of-year special dividend depending on financial performance during the period.

This will be a 33% increase over the 3p per share returned during the fiscal year ended November 30, 2020.


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