Property developer Almcliffe Dhesi (AD) has received significant investment to assist the regeneration of Sunderland’s former Farringdon Police Station site. This will create a multi-million-pound retail development, creating up to 150 jobs for local people.
A £6million loan to support the development has been provided by the North East Commercial Property Investment Fund which is managed by FW Capital and backed by the North East Combined Authority (NECA). It is the largest loan provided by the fund since its launch in 2023.
Alongside the initial development capital required to launch this project, additional finance has again been provided in the form of mezzanine funding, by Develop North PLC, the North East-based investment fund managed by the Newcastle-based wealth management and fund management specialists Tier One Capital. Develop North initially provided a £580K facility with a follow-on facility of £350K to take the project through to conclusion.
The 32,100sq ft retail park will feature a range of national retailers, including B&M Homestore, Costa, Greggs, and Westway Vets.
Almscliffe Dhesi was co-founded by Directors Neil Creeney and Bal Singh in 2019, and focuses on retail, roadside and trade counter developments predominantly in the North East and Yorkshire. Retail developments are typically standalone convenience food retail stores and small retail partners. Roadside developments typically include drive-thru with EV charging hubs and complementary retail units.
Neil Creeney, Director at AD said: “Demolition work was completed last year and our contractors started on site in early December 2024. We’re making good progress with the steel structures starting to come out of the ground. The site was previously a bit of an eye sore with a derelict police station that had created anti-social behaviour. This investment is helping us to repurpose this site to create a thriving retail hub that will boost the local economy, bringing a significant number of new jobs to the area. The site is fully let with some national brands.
“We really appreciate the support from Develop North PLC, Tier One Capital and FW Capital who’s combined support demonstrates confidence in our scheme. The backing from Tony Cullen and the team at FW Capital has once again been great. This is the second round of funding we have received from them after they supported us with a commercial development in Stanley back in 2022. They really take the time to really understand our business. The advice and funding from Develop North, which initiated this project, has been excellent and fundamental to the progression of this economically important scheme.”
Cllr Michael Mordey, portfolio lead for Investment at the North East Combined Authority, said: “We’re using devolved powers and funding to create jobs and attract investment into Sunderland and across the North East. This investment will breathe new life into a site in need of regeneration and continue Sunderland’s transformation and will improve quality of life for local people - improving our retail offer and creating opportunities for people to find work.”
Tony Cullen, FW Capital Fund Manager said: “This is the largest deal we’ve completed through the North East Commercial Property Investment Fund which was created to address a gap in the market and facilitate the delivery of new commercial property projects that support employment creation and economic growth. It’s great to be working with AD again. They’ve an excellent track record of regeneration and creating developments that bring significant investment to the local economy. This latest site in Sunderland is making a positive impact and will encourage local people to take advantage of the quality employment opportunities that will be available during construction and after the site is completed.”
Brendan O’Grady, Fund Manager at Tier One Capital, said: “We’re delighted to be working alongside FW Capital to support AD on this important job-creating regeneration project. Develop North is a specialist in alternative lending and providing mezzanine funding is an important element of the financing structure of projects like this. We look forward to supporting the developer and following the progress of this significant scheme that will be of huge benefit to Sunderland and the surrounding area.”
The North East Commercial Property Investment Fund is a £35million fund which provides loans of up to £7 million to support both non speculative and speculative developments for new build or refurbished commercial projects. This includes industrial units, distribution facilities or office schemes located in the seven authority areas: Northumberland, County Durham, Gateshead, Newcastle upon Tyne, North Tyneside, South Tyneside and Sunderland.
The £35 million fund is backed by the North East Combined Authority (North East CA). The Fund was launched to address a gap in the market and facilitate the delivery of new commercial property development projects in the North East area. Repayments will be reinvested in new schemes, creating a total investment of £119 million into commercial property in 15 years. It aims to create 5,600 jobs and develop 140,000 sq m of commercial space.
Develop North PLC is an investment company listed on the main market of the London Stock Exchange and specialises in providing finance to the residential and commercial property sector. To date, the fund has provided more than £80 million in funding to residential and commercial property developments, helping create significant economic growth in the North of England and Scotland.
