The £50m Scottish Partnership for Regeneration in Urban Centres (SPRUCE) Fund is a JESSICA (Joint European Support for Sustainable Investment in City Areas) UDF (Urban Development Fund) that is a source of funding for regeneration and energy efficiency projects within targetted areas of Scotland.
The SPRUCE fund has been established with funding from the Scottish Government and the European Regional Development Fund. The fund provides affordable, flexible, repayable loans for project sponsors. Eligible projects will be located within the 13 local authority areas in the Lowlands and the Uplands of Scotland as determined by the Scottish Index of Multiple Deprivation. The SPRUCE Fund is designed to lever significant co-investment from the public and private sectors in supporting urban renewal and employment growth through revenue generating projects.
The SPRUCE Fund is managed by specialist fund manager Amber Fund Management Limited (Amber), which was appointed by the JESSICA Scotland Investment Board comprising senior Scottish Government officials, urban regeneration experts and specialist fund experts. The SPRUCE Fund supports a wide range of urban regeneration activity within well defined, integrated, sustainable urban development plans.
Eligible and investible projects include the development of office and commercial space, key transport projects and investment in energy efficient projects. This latter activity includes support for innovative approaches to energy efficiency retrofit measures.
The SPRUCE Fund can lend to public, private or joint venture entities delivering regeneration or energy efficiency benefits within the designated local authority areas. The SPRUCE Fund lending rates are highly competitive.
Financial support from the SPRUCE Fund is provided in the form of loans of investment capital to be repaid within an agreed timescale. The Fund is not able to provide support in the form of grants.