West Midlands £210m property fund builds to new heights

Two successful property funds managed by Frontier Development Capital (FDC) have been granted additional flexibility offering developers increased support, following significant economic outputs since their respective inceptions in 2016 and 2019.

With a combined investment value of £210 million and the ability to recycle repaid investments back into the funds, the West Midlands Combined Authority’s Commercial Investment Fund (CIF) and Residential Investment Fund (RIF) have transformed the region’s ability to drive property developments and regenerate brownfield land. Since inception more than 4,400 new jobs have been created, over 1.8 million square feet of new commercial floor space has been developed and 1,700 residential units under construction. The fund will support speculative commercial development where high street banks are reluctant to fund.

Now both commercial and residential developers will be able to access an investment fund of £210 million available for schemes based within the West Midlands geography. Individual investments of up to £20 million will be considered with a repayment term of up to five years, giving developers the option to have longer term support post Practical Completion.
The fund will also support existing owner manager trading businesses with their property new build and eligible refurbishment projects across the region.

Additionally, the revised fund has the ability to support “green industry” projects such as the development of recycling plants and green energy schemes to help accelerate net zero carbon achievement across the West Midlands.

Investment access and deployment is available from Fund Manager Frontier Development Capital (FDC), who work closely with property developers to arrange investments from the WMCA.

Nick Oakley, Head of Property Investments at FDC, said:
“Despite the uncertainties of Brexit and the COVID-19 pandemic, demand for property development has remained strong thanks to the flexible funding support given by these funds. During the last year of the pandemic alone, we had over £58million of investments approved supporting investment into the region, bringing our total supported schemes to 33 with a total of more than £157m invested and £64m repaid and recycled back into the fund”.

“However, it is critical for the region’s economy that funds such as the WMCA CIF and RIF remain accessible and flexible to unlock potential, these additional enhancements to the funds will enable larger schemes to be supported creating a greater economic impact."

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