City Property Glasgow, which is owned by Glasgow City Council, has secured a £166m loan facility from Canada Life Investments.
Nicholas Bent, head of real estate finance at Canada Life Investments, said that the fully amortising loan is secured by three assets that are backed by 30-year leases to Glasgow City Council.
Those assets are: the Emirates Arena and Sir Chris Hoy Velodrome in Glasgow; Scotstoun Stadium and Leisure Campus, which is home to the Glasgow Warriors rugby team; and Glasgow’s Bellahouston Leisure Centre.
The 30-year facility includes an £81m index-linked tranche and an £85m fixed-rate tranche. The deal was arranged to help fund Glasgow City Council’s recently settled £500m equal pay bill.
Conor Doyle, business development director at Canada Life Investments, said the deal also provided further diversification to its loan book.
Council leader Susan Aitken estimated around 12,000 Glasgow households would be positively affected by the equal pay settlement.
“Hundreds of millions of pounds has been paid to thousands of our staff who had been denied equal pay for too long,” she said. “That is a huge step from where we were two years ago and a really significant milestone on the road to delivering pay justice.”
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