A new £50m fund to support commercial real estate developments in the Cardiff Capital Region has been launched.
The Strategic Premises Fund, from the £1.3bn City Deal for the region made up of the 10 local authorities of south-east Wales, will support regeneration, job creation and the acceleration of employment land schemes.
The fund is being managed by CBRE’s investment advisory team, part of CBRE Capital Advisors, which manages a number of other development funds across the UK, including the North West Evergreen Fund, the South Yorkshire Pension Fund and the Northern Ireland Investment Fund.
Funding will range from £2m to 15m with repayment terms of three years. As loans are repaid money will be reinvested into new projects with the aim of the fund becoming evergreen.
George Richards, senior director, investment advisory, CBRE, said: “We are delighted to be supporting the CCR in managing this new fund, a much-needed catalyst for the delivery of schemes which have previously struggled to get funding via traditional means.
"Following the pandemic, it is more vital than ever that state-of-the-art employment spaces continue to be developed, creating valuable new jobs for the local area and vibrant and dynamic community hubs. All returns will be reinvested back into the fund in order to help bring forward as many new schemes as possible over the next 10 years.”
Andrew Morgan, cabinet member of the Cardiff Capital Region and leader of Rhondda Cynon Taf County Borough Council said: “The Strategic Premises Fund is an innovative use of public funding to accelerate growth through supporting the delivery of new commercial premises across the Cardiff Capital Region. The fund will be investing in priority schemes which will unlock new employment space, contributing to the future success of the region.”
Rob O’Dwyer, head of infrastructure for the Cardiff Capital Region City Deal, said: “The launch of the Strategic Premises Fund is a welcome boost to the region that will maximise opportunities to provide facilities and premises to growing industries, creating job opportunities and economic growth across the region. It’s a great example of the Cardiff Capital Region working closely with the private sector to drive forward economic development projects and support innovation, business growth and regeneration.”
