Develop North PLC (Develop North), the Newcastle-based investment fund providing finance to property developers across the North of England and Scotland, has successfully exited its funding arrangement with Jaymac Pallet Services, marking the completion of a new warehouse facility on the Faverdale Industrial Estate in Darlington.
Develop North, which is managed by Tier One Capital, the Newcastle-based wealth management and fund management specialists, provided £2.15m in funding to support the construction of the 17,000 sq ft facility, which provides storage, repair, and supply of pallets.
The creation of this facility has enabled Jaymac Pallet Services to secure a long-term contract with a top four supermarket chain, providing its services to its nearby distribution centre, further cementing its growth trajectory.
Alongside the financial support provided by Develop North, the fund also helped build a team of professional advisors to guide the transition of Jaymac Pallet Services from a growing owner-managed business to a scalable, successful business.
This has enabled the company to secure a commercial mortgage and refinance with mainstream finance provider NatWest.
Develop North’s successful exit from the project marks another milestone in its strategy to support the development of businesses across North East England and Scotland. The fund has provided more than £80m in debt funding to 39 residential and commercial projects, creating significant economic growth in the regions.
Brendan O’Grady, Fund Manager at Tier One Capital, said: “We congratulate Jaymac Pallet Services on the successful completion of their new facility. This bespoke deal is a model example of how alternative lending can create the ideal platform for small businesses to flourish and grow.
“It’s particularly pleasing to see the company transition into a larger business, which has not only been supported by the funding Develop North provided but also by the close advisory support Tier One Capital gave. This again shows that alternative lending specialists can provide more than just finance, by actively engaging with clients to help them build successful, sustainable businesses.”
Jay Macari, Managing Director of Jaymac Pallet Services, added: “We’re incredibly grateful for the support from Develop North and the team at Tier One Capital. They have been instrumental in enabling our business to grow and in helping us secure our recent refinancing. With our new facility up and running, and the excellent relationship we’ve built with a leading supermarket, we are well-positioned for future growth.”
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