In 2015 SPRUCE provided a c.£2m senior debt facility to part fund the creation of speculative industrial units at Western Campus, Strathclyde Business Park in North Lanarkshire.
Strathclyde Business Park is Scotland's Premier Business Park, offering extensive business and lifestyle space and being home to over 240 companies employing approximately 6,300 people.
The project was a 50/50 private/public joint venture sponsored by CBC and Fusion Assets (part of North Lanarkshire Council). It consists of 44,000 sq ft of industrial units plus 97 car parking spaces, and was built on 1.5 hectares of brownfield land. The key drivers for the sponsors were economic regeneration and delivering employment outcomes.
At the time of entering into the transaction there were no pre-lets in place, with the co-sponsors working together through the construction phase and operational phase to secure tenants for the new space. The development was completed to shell and core and then fitted out to meet tenants’ space requirements. The new units have let up well and continue to be marketed. Through the project an estimated 49 full time construction jobs were sustained, and numerous SMEs have now been supported
The project has demonstrated the alignment of the SPRUCE fund and Scottish Government strategic objectives with regard to government regeneration policy. The investment provides access to development finance for speculative property projects and hence addressing the market failure for this in the banking market.
Brownfield land remediated