Building Scotland Fund reaches £100m milestone

Scottish housing, regeneration and industrial and commercial developments supported by investments through the Building Scotland Fund (BSF) have reached the £100m milestone. 

The £150m BSF is a precursor to the Scottish National Investment Bank and 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.

£25m 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.  

Scottish economy secretary Derek Mackay marked the £100m milestone with a visit to see progress made on the refurbishment of the 55 Douglas Street office development in Glasgow, which has benefited from £12m from the fund. 

Mackay said: “I am delighted that the Building Scotland Fund has now agreed investments of £100m, unlocking projects in excess of £238m 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.

“BSF has also agreed investments of £75m 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.”