Dundyvan Industrial Estate

North Lanarkshire

 

The established Dundyvan Industrial Estate lies to the south west of Coatbridge, between the town centre and the Shawhead Junction of the A725/ M8 motorway.

In 2012 the Scottish Partnership for Regeneration in Urban Centres (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.

SPRUCE is an innovative source of finance for projects aligned to key Scottish Government policies. North Lanarkshire is one of Scotland’s primary locations for industrial property for SMEs, and one of the 13 most deprived local authority areas in Scotland, making it a key target geography 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 has demonstrated the alignment of the SPRUCE fund and Scottish Government strategic objectives with regard to government regeneration policy.

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

  • increasing access to development finance for speculative property projects, hence addressing the market failure evident in this lending market.

The project has demonstrated the alignment of the SPRUCE fund and Scottish Government strategic objectives with regard to government regeneration policy.

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