Form of Investment
The Fund will provide investment to commercial property schemes, with the aim of the capital investment being returned to the Fund, along with a suitable return. This will ensure that the capital base of the Fund continues to grow and will therefore be available for further investments.
Investment in opportunities will be offered in the form of:
• equity;
• loans; and / or
• rental guarantees.
The Fund will create a recyclable and ongoing source of funding by generating a return on investment rather than the traditional grant funding approach. The model has been adopted to ensure that a longer term legacy for the region, in the form of an ongoing stream of investment, is created.
It is anticipated that investment for projects will work alongside other forms of finance or investment (e.g. bank loans, local authority grant, etc) to ensure schemes’ viability.