Regeneration fund to help drive economic progress for next decade
A regeneration fund which has seen £71m invested in regional development and created thousands of jobs has just been extended for 10 years.
The South Yorkshire (SY) Jessica Fund (formerly SCR Jessica Fund) has provided development debt funding across the region for commercial property and regeneration projects, predominantly offices and manufacturing parks, for a decade.
It is now being extended for another 10-year term and its remit widened to support residential, retail and leisure development.
The fund is managed by global real estate advisors CBRE and overseen by an investment board representing four local authorities and the Local Enterprise Partnership.
Rob Cuthbertson, associate director at CBRE’s Investment Advisory Team, said: “This is excellent news and will provide an exceptional boost for the regional economy.
“It is also testimony to the great levels of success which have been stimulated by the fund over its first 10 years.
“Through its approach, the fund has enabled the development of schemes which aren’t able to attract other funding and has supported development of employment space where traditional sources of finance are not flexible enough to be utilised.”
The original sources of capital are the European Regional Development Fund and Growing Places Fund, these have been supplemented with support from the SY Mayoral Combined Authority.
Launched in early 2013, SY Jessica’s primary objectives are to enable economic growth through sustainable development in South Yorkshire; enhance long-term growth prospects and competitiveness of the region through enterprise, employment, regeneration and sustainability; and provide the infrastructure required to generate jobs.
Christian Foster, of Doncaster City Council, who is chair of the Investment Board, said: “This is excellent news for development across South Yorkshire with all four Local Authority areas seeing development in their areas supported by the SY Jessica Fund.
“The ability of the fund to now also support residential and other commercial development adds an extra positive dimension going forward.”
To date, the fund has enabled the construction of more than 3.3m sq ft of employment floorspace which has facilitated the creation of more than 7,000 new jobs.
Additionally, the fund has attracted private sector investment in the region of £188m.
Ben Morley, of Sheffield City Council, who is director of the fund, added: “The fund has a total capital pool of £33m, of which £22m is currently available to invest.
“We will continue to look at any proposal presented to the fund and take a very flexible approach wherever we can to encourage sustainable development in the region.”
Schemes assisted by SY Jessica include the Sheffield Digital Campus in Sheaf Street, with the most recent phase having now been taken by BT to house 1,000 staff across the 65,000 sq ft development; Gateway 36, Rockingham and Barrowfield Business Park which are attracting local SMEs; Steel City House – a former telephone exchange built in 1927 which has been completely updated to provide Grade A office space; and the Advanced Manufacturing Park at Waverley.
