Develop North, a North East property investor, has expressed confidence in the region's economic prospects despite headwinds facing listed investment companies. The firm's newly released interim results for the six months to the end of May show a portfolio valued at nearly £23m, with a net asset value total return of -0.88%. However, leadership attributes this dip to one-off costs tied to launching a new investment prospectus, adopting a broader investment strategy, and restructuring its management team, including the appointment of former Newcastle City Council director of investment and growth, Michelle Percy, as CEO.
Investment in Future
Michelle Percy said the results "reflect a business that has spent the past six months investing in its future." The company, advised by Newcastle wealth managers Tier One Capital, saw total revenue rise to £1.26m in the half-year, up from £1.03m in the same period last year. Despite this, pre-tax losses reached £179,000, compared to a pre-tax profit of £494,000 in the first half of 2025. Pre-tax profit before finance costs stood at £90,000, down from £575,000 previously.
Strategic Expansion
Develop North entered its 10th year as a listed company following shareholder approval of an expanded investment policy that now includes residential real estate, commercial real estate, and real estate projects. The firm completed two successful exits during the period, including from Whitley Court at Leeming Bar Business Park and the former Farringdon Police Station in Sunderland, which was converted into retail units.
Leadership Confidence
John Newlands, chairman of Develop North PLC, said: "Develop North enters this next phase with a strengthened leadership team, a broadened investment strategy and an established platform from which to grow. We expect to complete our first investment under the revised policy during the current financial year and continue to see encouraging levels of activity across our pipeline."
Michelle Percy added: "These interim results reflect a business that has spent the past six months investing in its future. We've evolved our investment strategy, strengthened the leadership team, welcomed new shareholders and continued to recycle capital through successful exits, all while maintaining the disciplined approach that has defined Develop North since launch."
Regional Benefits
The board emphasized that these moves signal confidence in the region, which is benefiting from public and private sector investment, regeneration activity, and growing recognition as one of the UK's most attractive areas for development. Percy noted: "Our purpose remains unchanged. We want to provide investors with access to attractive regional real estate opportunities while supporting developments that deliver regeneration, create jobs and contribute to long-term economic growth."
As Develop North looks ahead, Percy expressed optimism: "As we enter our tenth year, we're in a strong position. We have an experienced team, an expanded investment mandate, a healthy pipeline of opportunities and a portfolio that continues to perform well. We're excited about building on that momentum during the second half of the year and continuing to create long-term value for both our shareholders and the regional economies in which we invest."
