£100m milestone for Building Scotland Fund
Paving the way for the Scottish National Investment Bank.
Housing, regeneration and industrial and commercial developments are being supported by investments of £100 million through the Building Scotland Fund (BSF).
The fund, backed by £150 million in total, was established as a precursor to the Scottish National Investment Bank and has the same values, principles and ambitions.
Economy Secretary Derek Mackay marked the milestone with a visit to see progress made on the refurbishment of the 55 Douglas Street office development in Glasgow, which has benefitted from £12 million from the fund.
Mr Mackay said:
“I am delighted that the Building Scotland Fund has now agreed investments of £100 million, unlocking projects in excess of £238 million and providing a significant boost to the Scottish economy.
“This milestone is an important step not only for the Building Scotland Fund but also lays a strong foundation for the Scottish National Investment Bank – paving the way for it to become a cornerstone institution for Scotland’s economy.
“A total of £25 million of BSF funding is being invested in projects through the SPRUCE urban regeneration fund. This includes the new high-spec refurbishment at 55 Douglas Street which is helping to revitalise Glasgow’s city centre and bring additional capacity for business and jobs.
“BSF has also agreed investments of £75 million in a range of housing projects, from large-scale transformational projects to smaller developments being delivered by small to mid-size enterprise housebuilders. This is supporting the development of more than 5,500 homes and around 600 full time jobs.”
Gareth Richardson, director of asset management at Signal Capital, owners of 55 Douglas Street, said:
“The funding we have received through the BSF has been invaluable. Without that level of investment we would not have been able to maximise the potential of the building by creating a 10,000 square foot extension, providing larger floor plates and a complete transformation of the front exterior. This much needed additional space will help address Glasgow’s critical shortage of high quality office accommodation, enabling the city to attract and retain occupiers which in turn encourages economic growth.”
The £150 million Building Scotland Fund is a precursor to the Scottish National Investment Bank and reflects the principles behind it. The BSF is available to non-public sector organisations - including businesses, housing associations and universities - to support the development of house building across all tenures, to develop industrial and commercial space and support business-led research and development.
Scottish Enterprise, Highlands and Islands Enterprise, the Scottish Funding Council and the Scottish Futures Trust are working with the Scottish Government to deliver the fund and bring forward a pipeline of projects.
£25 million from the fund is supporting further investment by SPRUCE (Scottish Partnership for Regeneration in Urban Centres). SPRUCE is an evergreen fund, managed under an agreement between Scottish Ministers, the European Investment Bank (EIB) and Amber Infrastructure, which invests in regeneration, property and sustainable energy projects across Scotland.
The SPRUCE fund was originally set up with Scottish Government and European Regional Development Fund (ERDF) funding under the European Commission’s JESSICA (Joint European Support for Sustainable Investment in City Areas) initiative.
Since 2016, SPRUCE has been recycling the original capital, as well as investing additional public and private sector funds, into eligible projects.
Latest News from
£24bn infrastructure plan will boost jobs25/09/2020 12:05:00
Tens of thousands of jobs will be supported by the Scottish Government’s new £24 billion Draft Infrastructure Investment Plan (IIP).
COVID-19 spending reaches £6.5bn25/09/2020 10:05:00
Autumn Budget Revision outlines latest funding allocations.
Scottish Sea Fisheries Statistics 201925/09/2020 08:05:00
The Chief Statistician released figures that show that in 2019, Scottish registered fishing vessels landed 393 thousand tonnes of sea fish and shellfish with a gross value of £582 million.
Helping communities through the pandemic24/09/2020 17:17:17
The Scottish Government has now committed more than £350 million to support communities during the coronavirus (COVID-19) pandemic.
Coronavirus (COVID-19): NHS pain management services24/09/2020 15:05:00
Framework to support the recovery and re-mobilisation of specialist pain management services.
First Minister calls for urgent four nation coronavirus talks24/09/2020 12:05:00
Scale and urgency of the situation demands joint working to find solutions.
Monthly GDP Estimates for July24/09/2020 08:05:00
Scotland’s GDP increased by 6.8% in July, according to statistics announced yesterday by the Chief Statistician.
Wider economic impacts of aquaculture23/09/2020 13:05:00
The aquaculture sector contributed approximately £885 million to the wider Scottish economy and supported 11,700 jobs in 2018, according to new research.