Projects

Cube Housing Association

Other

In 2015, SPRUCE provided a £5m senior debt facility to the Cube Housings Association (a wholly owned subsidiary of the Wheatley Housing Group) to be used for the part-financing of a distributed energy and building fabric improvement project for multi-story stock at Cube’s Broomhill and Gorget Estates in Glasgow.

Sector

Other

Location

Glasgow, Scotland

Status

Operational

Equity Ownership

Senior Debt Facility – Fully Repaid

Financial close

December 2015

Term Length

Medium term senior debt facility

About

The aim of the project was to substitute the existing electric heating and domestic hot water systems within the residences with a wet (radiator) system centrally fueled by biomass with gas back-up. Retrofit insulation also formed part of the project.

As such, the project focuses on both energy supply side carbon dioxide reductions as well as demand side energy conservation measures and has helped to alleviate fuel poverty for the Cube tenants within the units. In addition, Cube has benefited from the reduced on-going maintenance costs of a district heating scheme compared to its previous system.

Additional support for the project came from an Energy Company Obligation contribution from a major utility provider.

Key impacts and benefits

Senior Debt Facility (Financial)

£ 0.0 m

Sustainable Development Goals (SDGs)

2030 Agenda for Sustainable Development adopted by UN Member States in 2015

SDGs supported:

SDG contribution

Outcomes

SPRUCE facilities have typically addressed market failure in the provision of funding to eligible projects that demonstrate a strong regeneration or low carbon rationale. Projects funded through SPRUCE have generated direct employment benefits to local populations.
The SPRUCE fund provides affordable, flexible, repayable facilities for project sponsors, and was designed to lever significant co-investment from public sector and private sector sponsors in supporting urban renewal and employment growth through revenue-generating projects. Typically, projects will address market failure, will demonstrate a strong regeneration rationale, and will generate direct employment benefits to local residents.
Funding is provided in the form of competitively priced senior loans, mezzanine loans and equity to eligible projects to be repaid within an agreed timescale. Funding can be provided to public, private or joint venture entities delivering regeneration or energy efficiency benefits.

Cube Housing Association

About

Sustainable Development Goals (SDGs)

Outcomes

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