A review of the public sector funding available for SMEs through the Greater Manchester Combined Authority

1. Greater Manchester Investment Fund

2. Background – GMCA and Core Investment Team
 The GMCA is a statutory body with functions including economic development and regeneration that
cover the Greater Manchester area.
 It is comprised of the 10 Greater Manchester local authorities:
- Manchester
- Salford
- Trafford
- Stockport
- Tameside
- Oldham
- Rochdale
- Bury
- Bolton
- Wigan
 The Core Investment team is a GMCA team and is responsible for a number of investment
programmes aimed at encouraging business growth and investment in property and infrastructure.

3. Funding Position
 The table below summarises the status of the active funds as at 31st
March 2015.
 Funds are currently in the process of being established for the 2014-20 ERDF allocation. £97m will be
directed into successor funds to the existing Evergreen and North West Fund, and a dedicated Low Carbon
Fund.
£’m RGF2 RGF3
GM Loan
Fund
Growing
places
NW
Evergreen
Fund
2014-20
ERDF
Total
Invested 13.1 34.7 3.4 8.8 13.9 -
Board
Approved
36.2 34.7 5.3 33.6 55.3 -
Remainder - - 14.7 21.0 5.2 97.0
Total 30.0 35.0 20.0 54.6 60.5 97.0 297.1
Business funds Property & infrastructure

4. Our Process – projects > £500,000
Expression of interest submitted to
the Core Investment team –
response provided within 48 hours
Project is submitted to the Local
Enterprise Partnership (LEP) for
endorsement
Business plan is assessed by the
Core Investment team
Project is submitted to the
Combined Authorities (CA) for
approval (the CA meet once a
month)
Applicant submits a business plan
in a standardised format
Draft offer letter issued
Applicant commissions due
diligence
Once satisfactory due diligence has
been received along with any other
conditions specifically noted in the
offer letter, a loan agreement is
issued
Project is submitted to the Chief
Executive’s appraisal sub group
for approval and consideration of
lending terms
Business plan is reviewed by an
Independent Advisory Panel

5. Why use Evergreen/Growing Places?
Collaboration
• Funding where
traditional finance
cannot be obtained.
• Works in tandem with
other forms of funding.
• Welcomes schemes with
grants.
• Quick decision making .
Flexibility
• Competitive costs of
debt.
• Flexible terms;
• Various methods of
funding:
– Senior debt
– Clubs &
syndication
– mezzanine.
• Flexibility around cash
flow timings.
Experience
• Experienced teams
originating and
managing debt
investments.
• Finance and real estate
expertise.
• Experienced legal
advisors.
• Clearly defined
processes.
• Market standard loan
documents.
• Eligibility assessment.
Benefits for Developers

6. 6
CBRE | EVERGREEN | FUND BACKGROUND & UPDATE
CASE STUDY
The Cotton Building (iplus), Manchester
The Cotton Building
 Speculative Development
 £15m loan from Evergreen and Growing Places
 Total development costs of £40m
 Mezzanine funding by Pramerica
 Due to commence March 2014 and complete March 2016
 Match funding - £10million Private Sector Investment
 13,660 sq/m commercial floorspace
 BREEAM Excellent
 22,000 sq ft of existing brownfield land will be re-used
 The scheme will deliver in the region of 910 jobs
Borrower Allied London
Nature of loan Senior Debt
Size of Loan £10,000,000 Evergreen and
£5,000,000 Growing Places
Location Spinningfields, Manchester

7. Future
• To build upon the success of the existing funds and maintain momentum.
• Fund will be enhanced by the proposed Evergreen II (£50m) and Low
Carbon (£15m) subject to UK Government / EU discussion.
• New funds expected to be operational from 2016.