Projects

New Exchange (Cadworks)

Other

Urban Development

In 2018, SPRUCE provided a £7.5m senior debt facility to part fund the speculative development of a new Grade A office (the “New Exchange”) on the junction of Cadogan Street and West Campbell Street in Glasgow’s City Centre Central Business District.

Sector

Other

Urban Development

Location

Glasgow, Scotland

Status

Operational

Equity Ownership

Senior Debt Facility – Fully Repaid

Financial Close

March 2018

Term Length

Medium term senior debt facility

About

The New Exchange project has strong credentials, including:

• Being located within one of the most deprived local authority regions of Scotland

• Improving the potential of urban areas to develop

• The conversion and adaptation of industrial sites and business centres and facilities that offer employment and training to people living in targeted areas

• Investing in the rehabilitation of the built environment (specifically the continuation of work around the decontamination and servicing of a brownfield land site with an end use which is linked to ERDF eligible activity)

• Facilitating regeneration by providing access to senior development finance for speculative property projects and hence addressing the market failure for this in the current banking market.

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Key impacts and benefits

Senior Debt Facility

£ 0.0 m

Jobs Creation Target

> 0

Business Space Created

0,0 sqm

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.

New Exchange (Cadworks)

About

Sustainable Development Goals (SDGs)

Outcomes

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