Construction works have started on the site of a former car showroom on Dale Road in Shildon, which will be transformed into a new Co-op convenience store thanks to a £780,000 investment by FW Capital, which manages the North East Property Fund.
Local firm James Southern Real Estate Ltd secured the loan to facilitate the construction of the 3,800 sq.ft retail unit for the Co-op, which is expected to create up to 20 local jobs when it opens later this year.
The North East Property Fund was established with the aim of supporting the development of small-scale property schemes and is backed by Santander and the North East Local Enterprise Partnership (LEP).
It offers loans from £250,000 up to £1m for residential and non-speculative commercial developments in Tyne and Wear, Northumberland and County Durham. The Fund can provide up to 100% of build costs for suitable schemes with repayment terms available up to two years.
James Southern, Director of James Southern Real Estate, said: “We are grateful to the FW Capital and the North East Property Fund for their support. With this investment, we have been able to bring a major retailer to Shildon and create job opportunities for local people.”
Tony Cullen, Investment Executive at FW Capital, said: “We are delighted to have supported this development, which will benefit the local community and provide employment in Shildon for many years to come.
“This is a great example of how the North East Property Fund is able to finance commercial schemes and support the creation of local jobs.”
Andrew Moffat, Chair of the Investment Board at the North East LEP, said: “It’s great to see the North East Property Fund doing what it set out to do when it was established, which is to support local construction projects and create jobs by offering short-term loans for small and medium-sized construction and property development companies. We look forward to supporting more projects such as the Shildon Co-op development and would encourage interested developers to get in touch.”
Phoebe Paxton, Relationship Manager, Santander UK, commented: “The North East is a vibrant, thriving region and we are delighted to support the development of multiple local projects like this convenience store. This development provides much needed facilities and jobs for the local community, and we look forward to completion of the project later this year.”