In 2012 SPRUCE provided a circa £2m senior debt facility to Dundyvan LLP, a 50/50 private / public joint venture between CBC and Fusion Assets (part of North Lanarkshire Council), to be used for the speculative construction of c.44,000 sq ft of industrial units. This followed enabling ground works that had been undertaken using VDLF investment delivered through North Lanarkshire Council and Fusion Assets.
North Lanarkshire is one of Scotland’s primary locations for industrial property for SMEs, and one of the 13 most deprived local authority areas of Scotland which were the key target geographies for SPRUCE up until the fund’s first closing at the end of 2015.
The development was completed successfully to shell and core and has since been fitted out to meet tenants’ space requirements. At the time of entering into the transaction there were no pre-lets in place, with the co-sponsors working together through the construction phase and operational phase to secure tenants. Following the development, occupancy at Dundyvan Industrial has turned out to be excellent.
The project delivered numerous benefits including: the development and the remediation of a 1.24 hectare brownfield site which was identified on the Vacant and Derelict Land Register; new fit for purpose business space for up to 16 SMEs; an estimated 12 full time construction jobs; an estimated 117 full time jobs created and; increasing access to development finance for speculative property projects, hence addressing the market failure evident in this lending market.