Phoenix Group has provided £210 million investment to City Property Glasgow, a wholly owned subsidiary of Glasgow City Council (GCC) to support the council’s recently settled equal pay liability.
Phoenix Group has secured the investment in partnership with abrdn, in a property portfolio that includes some of Glasgow’s most iconic buildings such as the Kelvingrove Art Gallery, two educational campuses across the local area and the City Chambers.
It is structured as a long-term fixed-rate fully amortising bond. It will help GCC to resolve the remaining equal pay liability – with around 19,000 individuals positively affected by the settlement – while protecting city assets that will continue to be used for the greater public good.
Phoenix considers the investment an excellent match for its long-term annuity liabilities and aligns with the company’s commitment to have a positive social impact through investments in areas across the UK.
Manuel Dusina, head of infrastructure at Phoenix Group, said: “This funding will help provide significant investment in Glasgow and aligns with our commitment to invest in assets across the UK to help have a positive social impact.”
Andrew Dennis, head of private placement research at abrdn, added: “This transaction is highly innovative and cost-efficient, allowing Glasgow City Council to settle historic liabilities, whilst also providing a highly rated asset for our client.”