Written Statement - Regeneration Investment Fund for Wales

I would like to update members on an important development in the field of regeneration: today I am launching the Regeneration Investment Fund for Wales.

Members will already be aware of this Fund, which has been established under the European Union’s JESSICA initiative. In August, I announced the appointment of Amber Infrastructure and Lambert Smith Hampton as the Fund and Investment Managers.

The fund is now open for business. It currently holds £55m of investment from Welsh Assembly Government and European Structural Funds. The fund managers’ target is to lever in another £55m of private sector investment by 2015.

Suitable projects will include medium to large scale development opportunities where there is a mix of commercial uses. The Fund will also actively seek investment opportunities in other areas such as renewable energy generation, waste, and infrastructure.

The overall requirement is that the new investment opportunities will not only have a lasting legacy for the areas that are regenerated but that the funding will be recycled so that more people and places can benefit in the future.

The Fund has been created with an initial term of 12 years and has been established as an evergreen fund where investment returns will be reinvested in new projects.

This represents a huge opportunity for Wales and as one of the first JESSICA initiatives to be fully up and running in Europe, it is also leading the way in Urban Development Funding across Europe.  

The opportunity is even greater because the investment will be in projects that recycle the return back to the Fund, crucial at a time of severe cuts to public expenditure.