£8m facility to support delivery of 52 low-carbon South Yorkshire homes
The South Yorkshire Pension Fund has provided its first loan to the second phase of a low-carbon housing development in Sheffield.
Following its launch in March of this year, the fund has provided an £8m debt facility to support the second phase of a ‘sustainable’ regeneration project in Little Kelham.
The second phase of the project, led by developer Citu, will comprise 52 homes which will be heated by carbon neutral renewable energy.
In addition, the regeneration site is situated within walking and cycling distance of Sheffield city centre in a bid to further reduce carbon emissions.
The loan is the first for the £80m South Yorkshire Pension Fund, and will run alongside the SCR JESSICA Fund bringing the total funding in the region to over £120m.
Cllr Mick Stowe, chair of South Yorkshire Pensions Authority, commented: “We are pleased that the first loan being made from this allocation supports the regeneration of such an historic site in Sheffield and involves the delivery of much needed housing constructed in a way that is adapted for a low carbon future.”
CBRE’s Investment Advisory team, part of CBRE Capital Advisors, manages both funds. Will Church, senior director at CBRE Capital Advisors, added: “This loan is significant as it builds upon a loan the SCR Jessica Fund made four years ago for the existing commercial space at Little Kelham, a strategically important site for the region.
“The creation of the South Yorkshire Pension Fund broadens the investment scope of SCR Jessica and has enabled investment into alternative sectors whilst staying true to the core principals of investing in low carbon projects that support regional growth.”
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