City Region fund boost for two business developments
The Sheffield City Region JESSICA Fund has provided two new loans for developments in the City Region.
The first loan of £5 million is for the development of the iconic, Grade II listed Steel City House, in Sheffield City Centre, by Scotts Developments. The loan will enable the refurbishment and addition of an extra floor at the property and provide c. 63,561 sq ft of much needed Grade A office space in the Sheffield Central Business District.
The second loan of £2.78 million is to Citu Kelham Island LLP (“Citu”), owned by Citu Developments LLP. Citu is developing two derelict buildings of historic importance at Kelham Island, a mixed use urban development project close to the centre of Sheffield. The loan will enable Citu to refurbish a c 20,500 sq ft mill, known as Eagle Works, and convert it to office space. The loan will also provide Citu with the funding to develop a further c.9,150 sq ft of refurbished and new office space at Green Lane Works. Both buildings will be designed for small and medium businesses in the developing creative and digital sector.
The SCR JESSICA Fund has also received its first loan repayment which will now be recycled back in to the Fund for further regeneration projects in the region. Harworth Estates has repaid the £2.7 million loan facility, which SCR JESSICA provided in March 2014 to fund its 100,000 sq ft industrial development, R-evolution@The AMP, at the Advanced Manufacturing Park (AMP) in Rotherham, Yorkshire (pictured above).
William Church, Director of CBRE Capital Advisors, the Fund’s investment advisor, commented:
“The aim of the Fund is to give developers the opportunity to secure much needed finance for strategic sites that will make a significant contribution to the success of the Sheffield City Region. Both these developments fit the investment criteria we set out for the Fund perfectly. They are projects that can promote sustainable employment, rejuvenate areas and create new opportunities for communities across the region.
”We are now seeing some of the earlier loans granted by the Fund be repaid. This will enable us to ensure the funding of future projects that will be crucial to the continued regeneration and economic growth of the region.”
James Newman, Chairman of the Sheffield City Region Local Enterprise Partnership (LEP), added:
‘’These latest two investments by the Fund will provide much needed Grade A office space in Sheffield city centre and underline the LEP’s commitment to its strategy of growing the professional services and digital sectors across the whole City Region.’’
Councillor Leigh Bramall, Cabinet Member for Business, Skills and Development at Sheffield City Council, said:
“We are committed to positioning the Sheffield City region as a leading destination, not just for UK businesses but international ones too. Key to this is having the ability to regenerate and enable further development across the region. The SCR JESSICA Fund is an intrinsic part of this regeneration.”
The SCR JESSICA Fund, which is made up of the European Regional Development Fund (ERDF) and Growing Places capital, aims to provide funding for projects at competitive commercial rates where funding might otherwise prove challenging in the current markets. The Fund will commit capital to regeneration opportunities with a focus on office and industrial developments which meet the ERDF’s targets on employment, remediation and floorspace outputs. The Fund is managed by CBRE Capital Advisors.
Photograph above shows R-evolution@The AMP, at the Advanced Manufacturing Park (AMP) in Rotherham, Yorkshire.