Leeds City Region to kick start business growth

Development projects that have stalled due to a lack of commercial finance could benefit from up to £20m new investment capital from the Leeds City Region Partnership.

The past five years have been challenging for the economy right across the UK and the construction industry in particular.

Although game changing schemes, such as the Leeds Arena and Trinity, have continued to be delivered across the Leeds City Region, access to suitable finance has stopped many projects in the region from proceeding. A Detailed Market Needs Study of businesses operating across the Leeds City Region provided evidence that the number of current stalled projects was approaching 20,000 overall, with an estimated 1,700 projects mainly in the property and infrastructure sector seeking in excess of £500k.

The Leeds City Region Revolving Investment Fund (RIF) is committed to providing up to £20m in investment capital to support business in delivering commercially viable infrastructure and construction projects, where conventional sources of funding are insufficient.

Since the recession, the banks and other institutional lenders have set much more stringent terms and lending limits, with construction and property related projects being most affected. The RIF has been designed to kick start precisely those kind of schemes. Using a tried and tested funding approach, which has enabled major schemes such as the Wakefield Trinity Walk and Bradford Southgate retail schemes to go ahead, the RIF aims to deliver viable projects that will be a catalyst for economic growth and job creation in the City Region.

Coun Peter Box, Leader of Wakefield Council and Chair of the Leeds City Region Leaders Board outlines what the RIF has to offer:

“The Revolving Investment Fund has £20m available to provide loans for investment in large scale infrastructure and construction projects. This includes housing projects across the Leeds City Region that require a minimum loan investment of £1m.

“The RIF will be available to fund a maximum of 25% of the total funding required, with the other 75% being funded through private sector finance.”
‘’We have undertaken research that shows there is a need in the market for this type of Fund, and I encourage businesses with viable projects in the region to take advantage of this opportunity.”

The money is advanced solely in the form of debt, on a commercial basis that is appropriate in relation to the other sources of finance being utilised to fund the project, and the risk profile associated with the lending.

Who is eligible?

Every business and project is different and so projects will be assessed on a case by case basis. The Leeds City Region team will work with interested parties and talk through issues such as the business model and costs as well as prevailing risk and mitigations. All projects will undergo detailed appraisal and due diligence within the Fund Investment process.

The Starting Point – The starting point to access funding through the ‘RIF’ is to visit http://business.leedscityregion.gov.uk/RIF or contact the LCR Team for a discussion at 07891 270 250.

This article was contributed by The Leeds City Region