The proposed fund would support the delivery of new homes and wider regeneration by addressing viability challenges through a blend of public and private sector investment.
David Smith, executive director at CBRE, said: “Glasgow has the ambition and development opportunities to deliver substantial change across the city, but viability gaps continue to prevent that potential from being realised.
“A well-designed impact fund could be a catalyst for delivery, helping projects move forward and attracting the private investment needed to deliver new homes and meaningful regeneration.
“Glasgow City Council is taking a proactive approach to addressing these barriers, recognising the opportunity for new funding models to support the city’s growth.
“Commissioning this business case is an important first step.”
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The work forms part of the council’s wider strategy to attract investment and support development, including its goal of increasing the city centre’s residential population to 40,000 by 2035.
CBRE, with input from economics, policy and strategy consultancy Mandala Partners, will assess potential funding models that bring together public and private capital to address viability gaps and support development in central Glasgow.
The team will draw on its experience advising on similar impact funds across the UK, as well as its knowledge of the Glasgow property market.
Councillor Ruairi Kelly, depute leader and convener for housing and development at Glasgow City Council, said: “We are constantly looking for new and innovative ways to unblock some of the issues facing potential development in Glasgow city centre and beyond.
“Developers are often faced with financial viability gaps when developing new buildings and repurposing heritage properties in the city centre, and the business case to be developed by CBRE will allow us to approach the Scottish and UK Governments to advocate for support and the creation of an Impact Fund for the city.
“This model has been shown to be successful elsewhere.
“Similar funds have brought in well over £2 billion of private and public funding, and there is no reason we should not aim for this and more.”
The business case will explore how the fund could be structured and financed, taking into account different approaches used by local and regional authorities across the UK.
It will also consider the specific development challenges and funding context in Scotland.
The initial focus will be on central Glasgow, though the fund could be expanded to cover the wider region in the future.
The business case is being prepared in line with HM Treasury’s Green Book guidance and is expected to be finished by the end of 2026.
A council steering group, made up of elected members and senior officers, is overseeing the process.
David Smith emphasised that collaboration between the public and private sectors will be critical to making the fund a success.
He said: “Strong partnerships between the public and private sectors will be central to that effort, bringing together the council’s ambitions with the capital and expertise of developers and investors to help make projects viable.
“Our experience advising on impact vehicles elsewhere, most notably in Greater Manchester, has shown how targeted public investment can stimulate development and attract private capital.
“We will bring that experience together with our knowledge of Glasgow to develop a robust business case and assess how a fund could best support the city’s growth.”
No final decision on establishing the growth fund will be made until the business case is complete and has been fully reviewed by the council.
