William Eichler 02 December 2019

City council property company welcomes £195m investment

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.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner