William Eichler 02 December 2019

City council property company welcomes £195m investment

City council property company welcomes £195m investment image

Glasgow City Council has announced it will be using a multi-million pound investment in its property company to help fund its equal pay settlement.

The specialist insurer of pension funds, Pension Insurance Corporation plc (PIC), has said it will invest £195m of debt finance in City Property Glasgow Ltd, a subsidiary of the Glasgow City Council Group.

The debt, which will be secured on a portfolio of five strategic city properties, including the Royal Concert Hall, the Riverside Museum and various sports and leisure facilities, will be used to fund the council’s equal pay settlement.

Glasgow City Council agreed to pay out a reported £548m in January after a long-running dispute over women being paid historically less than men in jobs of the same grade.

Pauline Barclay, managing director of City Property, said: ‘We are pleased to have been able to complete this transaction with PIC, an increasingly important lender in the private debt space. The PIC team have been flexible and proactive in helping us achieve our aims.’

According to PIC, the investment was attractive because the 29-year amortising debt profile was a good match for their future pension payments.

Allen Twyning, head of debt origination at PIC, said: ‘We are pleased to have completed this transaction which supports Glasgow City Council. It represents a good portfolio diversifier for PIC.

‘With almost seven billion of insured pension scheme liabilities announced so far this year, PIC continues to look for secure, long-term cashflows to back our pension payments.

‘These investments are a good fit for our long-term liabilities and at the same time have a wider benefit for society.’

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
For your free daily news bulletin
Highways jobs

Front-End Developer - Learning Platform

Essex County Council
Essex County Council (ECC) is one of the largest and most dynamic local authorities in the UK, serving a population of 2 million residents, and has a England, Essex, Chelmsford
Recuriter: Essex County Council

Personal Advisor - Leaving After Care

Essex County Council
Please note this is a fixed term /secondment opportunity until August 2021. (please discuss with your current manager if you are considering a secondm England, Essex, Colchester
Recuriter: Essex County Council

Personal Advisor - Homelessness

Essex County Council
Please note this is Fixed Term Contract/secondment opportunity until 31st March 2021. (please discuss with your current manager if you are considering England, Essex, Harlow
Recuriter: Essex County Council

Commercial Vehicle Technician

Chelmsford City Council
£30,000 per annum
We are seeking a fully trained HGV technician to work as part of the team who maintain the Council's fleet to the highest standards.  Chelmsford, Essex
Recuriter: Chelmsford City Council

Social Worker - Carer Assessment Team (Fostering)

Barnet London Borough Council
£39,040.00 - £49,950.00 Per Annum
In Barnet we value our Social Care staff and we know that our biggest and most important resource are its workforce. Colindale, London (Greater)
Recuriter: Barnet London Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue