In 2017 SPRUCE provided a c£9m senior debt facility to CSG Blenheim House Limited, a special purpose vehicle sponsored by Chris Stewart Group. CSG Blenheim House was set up to acquire, expand and refurbish a c37,000 sq ft Grade A office with 18 basement and external car parking spaces located in east central Edinburgh.
The project has a strong alignment with SPRUCE’s strategic objectives and also Scottish Government regeneration policy. At the time of entering into the funding arrangements there were no pre-lets in place and no other commercial debt propositions for the developer to access. As such SPRUCE is the only lender to the project. Works to shell and core are to take eight months, with a fit out period of up to 16 months anticipated and to be undertaken in accordance with tenant demand.
SPRUCE funding for the transaction originated from additional capital injected into the fund by the Scottish Government in the form of 2016/17 Financial Transactions Capital. This ring-fenced additional funding tranche was received into SPRUCE following the successful progress of the fund to date.
Grade A office space
Senior debt facility