What Develop North does

Develop North PLC is a London Stock Exchange-listed closed-end investment trust (ticker: DVNO) providing property development finance and real estate investment opportunities across the North of England and Scotland. Originally launched in January 2017 as TOC Property Backed Lending Trust PLC, the company rebranded in May 2022 and is advised by Newcastle-based Tier One Capital Ltd. Since inception, Develop North has deployed approximately £89.8 million across 43 investments with 35 developers, generated £280 million+ in gross development value, supported over 12,000 jobs, and completed 28 successful exits with an average gross IRR of 9.5% on loans written and exited since June 2018.

The company's core lending products comprise residential and commercial development finance (loan sizes £0.5m to £5m, terms of 1-5 years, interest rates starting at 6%, gearing up to 85% of cost and 75% of GDV) delivered via senior secured, bridging, and subordinated structures. Typical loan economics run at ~12% interest on drawn funds with blended LTV of ~75%. Following February 2026 shareholder approval, the company expanded its mandate to include direct Commercial Real Estate Investment (office, logistics, retail) and Residential Real Estate Investment (PRS, supported housing), transitioning into a multi-asset real estate platform with a target to grow AUM from approximately £90m to £300m within five years.

The revenue model is two-sided: developer-side interest income on property development loans, and investor-side returns via share price appreciation and quarterly dividends (target annual return 5-6%, NAV total return target 10-11% per annum). FY2025 investment income reached £2.22 million (+14.6% YoY), with £1.0 million distributed to shareholders. Capital is raised through share issuance on the LSE Main Market and distributed through Hargreaves Lansdown, Interactive Investor, AJ Bell, Shore Capital, and Redmayne Bentley. The company is FCA-authorised (firm no: 948645), AIFMD-compliant, and operates with 1-10 employees under the externally-advised closed-end fund structure.

Name

Develop North

Legal name

Develop North PLC

Website

https://developnorth.co.uk

Company type

Public

Founded year

2017

Operating status

Operating

Headcount range

1–10 employees

Short description

Develop North PLC is a London Stock Exchange-listed closed-end investment trust providing property development finance and real estate investment opportunities to SME developers across the North of England and Scotland, advised by Newcastle-based Tier One Capital Ltd.

Ownership category

akta.pro rank

Product category

Property Development Finance & Real Estate Investment

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Other Financial Vehicles (52599), Portfolio Management and Investment Advice (523940)

SIC

Real Estate Investment Trusts (6798), Investors, Nec (6799)

akta.pro primary industry

Land Acquisition, Lot Development & Construction Financing (AD&C) (FSALAHAI)

akta.pro secondary industry

Construction & Development (C&D) Lending — Commercial/Multifamily (FSALADAH)

Keywords

• Property development finance
• Real estate lending
• Development loans
• Investment trust
• Commercial property investment

Headquarters

HQ city

Newcastle Upon Tyne

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Loan Interest Income: Develop North generates income through interest charged on property development loans. Typical loan terms range from 1 to 5 years with interest rates typically around 12% and blended loan-to-value of around 75%. Interest is payable only on drawn funds.
2. Investment Portfolio Returns: The company generates returns from its investment portfolio including real estate lending, commercial property investments, and residential housing. Investment income increased by 14.6% to £2.22 million in FY2025.
3. Dividend Distribution: The company pays quarterly dividends to shareholders. The fund aims to generate an annual return of 5-6% with dividends paid on a quarterly basis, distributing approximately £1.0 million in dividends in FY2025.
4. Share Issuance Proceeds: The company raises capital through share issuances to expand its investment portfolio, including a proposed £58 million raise in early 2026.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels6 records

Core offering

Develop North PLC is a closed-end investment trust that provides property development finance and direct real estate investment to projects across the North of England and Scotland. It offers senior secured loans, bridging loans and subordinated loans to residential and commercial property developers (typically £0.5m–£5m, 1–5 year terms, interest from 6%) and is transitioning into direct investment in commercial and residential real estate. Capital is raised from UK retail and institutional investors via ordinary shares listed on the London Stock Exchange Main Market.

Product overview

Develop North is a closed-end investment trust listed on the London Stock Exchange since 2017, providing income-focused investment opportunities and property development finance across the North of England and Scotland. The company operates a multi-asset investment platform comprising three core offerings: Real Estate Lending (senior secured loans, bridging and subordinated loans from £0.5m to £5m for residential and commercial development), Commercial Real Estate Investment (acquisitions and asset management of commercial properties including office, logistics, and retail), and Residential Real Estate Investment (freehold and leasehold property for supported housing and private rented sector). The company also facilitates retail share offerings for investors to participate in its investment opportunities through the London Stock Exchange and participating intermediaries. Since 2017, Develop North has deployed approximately £89.8m across 43 investments creating over 12,000 jobs and contributing more than £280 million in gross development value.

Differentiator

Problem solved

Functional benefit

Products and services

• Residential Development Finance

Quantifiable outcome

• £89.8m deployed across 43 investments since 2017
• +5 more outcomes

Named customers15 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered minor and core.

• Grown From A Seed Developments LtdminorOthers · 22 June 2026Developer partner for Whitley Court industrial development at Leeming Bar Business Park. Develop North provided £2.4m development finance, and the developer subsequently secured commercial mortgage refinance to take over the completed project.
• Community Foundation North EastminorStrategic or Co-development Partner · 3 December 2025Develop North partnered with Community Foundation North East to promote regional growth through the North East Roots Homecoming celebration, engaging diaspora communities and attracting inward investment.
• Broadoak Asset ManagementcoreStrategic or Co-development Partner · 1 January 2025Broadoak Asset Management was appointed by Tier One Capital in 2025 to support the strategic growth of the North East investment fund, bringing additional commercial property expertise.

Scale indicators14 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• LendInvest: UK's largest specialist property development finance platform, providing bridging, development, and buy-to-let loans to residential and commercial developers. Direct competitor to Develop North in the UK property-backed lending market, with overlapping product range and customer base of property developers.
• RM Secured Direct Lending: LSE-listed investment trust focused on secured direct lending across the UK, including property development loans. Closely comparable business model as a listed, income-focused, property-adjacent lending trust.
• VPC Specialty Lending Investments: LSE-listed investment trust providing specialty lending to UK and European borrowers, including property-backed loans. Comparable as a listed alternative lending vehicle competing for similar capital pools from income-focused UK investors.
• Real Estate Credit Investments: LSE-listed closed-ended investment company focused on real estate credit across the UK and Western Europe. Closely comparable business model to Develop North as a listed vehicle providing property-backed loans with similar risk-return profile.
• GCP Asset Backed Income Fund: LSE-listed investment trust focused on asset-backed lending including property-backed loans. Comparable as a UK-listed alternative lending fund targeting similar risk-adjusted income returns for retail and institutional investors.
• Starwood European Real Estate Finance: LSE-listed closed-ended fund focused on originating senior loans to European property developers and owners. Comparable as a publicly listed alternative lender specialising in property development finance with institutional backing.
• Castle Trust Capital: UK specialist lender offering property-backed investment products and development finance, including structured mortgages. Direct competitor serving similar property development borrower segment with comparable product offerings.

Broad incumbents

• Shawbrook Bank: UK specialist challenger bank providing property development finance, bridging loans, and commercial mortgages. Functions both as Develop North's debt facility provider and as a direct competitor in the development lending market.
• Funding Circle Holdings: LSE-listed larger online lending platform with UK SME and property loan portfolios. Broader incumbent that overlaps with Develop North's lending activities but serves a much wider customer base including non-property SMEs.

Regional players

• PRS REIT: LSE-listed REIT focused on building new-build homes for the private rented sector, with significant exposure to UK regional markets including the North. Comparable as a publicly listed UK regional real estate investment vehicle, though focused on direct PRS ownership rather than lending.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries1 record

Funding overview

Funding rounds3 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Develop North