A £50m fund established by the Cardiff Capital Region (CCR) to accelerate commercial property schemes across south-east Wales is nearly fully deployed, having committed £58.7m in total to a portfolio of projects that have struggled to secure conventional finance. The Strategic Sites and Premises Fund, managed by CBRE’s investment advisory team, has provided more than £47m in loans to date, with several now approaching maturity and capital due to be recycled into a pipeline of future developments.
How the fund unlocks stalled projects
Launched in 2022, the fund was designed specifically to address funding market failures and unlock commercial real estate schemes that had stalled due to a lack of conventional finance. Its “evergreen” model means that as loans are repaid, the capital is reinvested in new projects, creating a sustainable cycle of development across the ten local authorities of south-east Wales. The fund targets office, industrial, logistics, hotel, leisure and mixed-use developments, as well as site-related infrastructure, with a focus on delivering employment space, regenerating brownfield land, fostering innovation and improving sustainability.
CBRE’s investment advisory team manages the fund, sourcing and monitoring projects that align with CCR’s Industrial and Economic Plan. The fund provides flexible development debt for commercially viable schemes that cannot attract finance from mainstream lenders, stepping in where the market has failed. This approach has allowed the fund to support a diverse range of projects, from large-scale energy infrastructure to industrial refurbishments and creative-industry expansions.
Among the most significant investments is an £8.5m loan for the Uskmouth Sustainable Energy Park in Newport, which is delivering one of the UK’s largest battery energy storage systems (BESS). Part of Ampeak Energy’s transformation of the former power station site, the AW1 project – a flagship of SAE Renewables – is a 240MWh BESS with potential for expansion. Financial close for the project was reached in August 2025, with total funding of £67.4m, and the loan from the Strategic Sites and Premises Fund is being drawn down ahead of schedule, according to CCR.
In Bridgend, the fund is backing the refurbishment of industrial units at Central Park, upgrading them to Energy Performance Certificate (EPC) A standards to improve sustainability and future-proof employment space for existing businesses. In Cardiff, a £12m loan is financing the expansion of Seren Studios, formerly Pinewood Studio Wales. The investment is part of an £18m funding package that includes a £6m grant from Creative Wales. The expansion will deliver 257,000 sq ft of production space, including four sound stages, and is expected to support up to 750 freelance crew annually. Seren Studios has hosted productions such as “Havoc,” “Industry” and “A Discovery Of Witches.”
Earlier investments include the fund’s first landmark deployment of £1.7m before Christmas 2022, which enabled Pulse Plastics Limited to relocate to a 38,000 sq ft industrial unit on the Rassau Industrial Estate in Ebbw Vale. The company reprocesses high-grade materials for medical supplies and other industries, supporting CCR’s priorities in Energy & Environment and MedTech. In February 2025, the fund provided a £5.5m debt loan to NPH Red Oak Platform for the acquisition and refurbishment of a 168,244 sq ft factory in Crown Business Park, Tredegar, with plans to improve environmental performance and incorporate on-site renewables such as rooftop solar panels and a wind turbine. CBRE Lending managed that transaction.
Record performance in 2025/26
The fund reported its strongest performance to date in the 2025/26 financial year, deploying £26.6m into key schemes across the region. That activity supported 1,694 jobs and unlocked more than 222,000 square metres of development space, while bringing seven acres of vacant or derelict land back into active use. The total committed investment of £58.7m reflects the fund’s ability to co-invest with private-sector developers, leveraging additional capital for projects that meet CCR’s economic objectives.
Mike Brough, director of regional growth at CCR, said: “It has been a record year for the fund, helping to unlock vital new workspace that aligns with CCR’s mission of driving economic growth, innovation, and sustainable development across South East Wales.”
Future pipeline and reinvestment
With a number of loans now nearing maturity, CCR is preparing to recycle capital into a strong pipeline of future projects. The fund is expected to be reinvested multiple times over the long term, sustaining its impact on the region’s property market. Brough added: “Looking into 2026/27, we are in a position where loans will be reaching maturity, returning capital to be re-deployed into new projects. We have a strong pipeline of future projects that we will look to progress through approvals, to continue the momentum from the last year. This is an exciting time for us and our partners.”
Mary Ann Brocklesby, chair of CCR and leader of Monmouthshire County Council, highlighted the rapid progress at Uskmouth, where the £8.5m loan is supporting a battery storage system central to the UK’s energy transition. “One of the most notable is the rapid progress at the Uskmouth Sustainable Energy Park in Newport. Supported by a new £8.5 million loan, the project is delivering one of the UK’s largest battery energy storage systems, with development moving at pace and funding being drawn down ahead of schedule,” she said. “In Bridgend, the fund is also supporting the refurbishment of industrial space at Central Park. This latest approval will upgrade units to EPC A standards, helping to futureproof employment space and strengthen sustainability credentials for existing businesses. Meanwhile, our investment at Seren Studios in Cardiff is helping to position the region as a major hub for the creative industries. A £12m loan is supporting the site’s expansion, including three additional sound stages and associated infrastructure.”
The Strategic Sites and Premises Fund forms part of the wider Cardiff Capital Region City Deal, a £1.2bn investment programme established in 2016 between the UK Government, Welsh Government and ten local authorities. The region accounts for approximately half of the total economic output of Wales and has identified key growth sectors including compound semiconductors, fintech, cyber, creative industries, medtech and net zero. Related CCR initiatives include the £6.6m Cluster Development and Growth Programme, the £10m Challenge Fund, a £50m Innovation Investment Capital equity fund, the Northern Valleys Initiative, and the Cardiff Capital Region Investment Zone backed by £160m of UK Government funding.
