Package of support including a Building Scotland Fund £26.8m loan.
More than 3,000 new homes are to be built in West Lothian – creating one of the UK’s biggest housing-linked infrastructure projects and generating up to £1 billion value to the economy over 15 to 20 years.
The Scottish Government’s Building Scotland Fund will provide a £26.8 million loan to assist the development as part of a support package agreed under the Edinburgh and South East Scotland City Region Deal.
West Coast Capital (WCC) the private equity partnership, owners of Winchburgh Developments Limited, has agreed a joint venture with CALA Homes to take forward the development. As well as the new homes and associated infrastructure, West Lothian Council will build a number of new state-of-the-art schools.
As Finance Secretary Derek Mackay met the developers, West Lothian Council and other stakeholders at the Winchburgh site, he said:
“As we support the continued growth of the Scottish economy, developments like Winchburgh are crucial. I am pleased the Building Scotland Fund, has been able to support this development; to unlock the construction of 3,450 new homes and the infrastructure required to make Winchburgh a reality.
“The Winchburgh development is a leading example of a joined up approach between the private sector, government and local council. It will help stimulate the economy and bring new homes, schools, transport and community facilities to the area.
“As well as being great for wider economic development, over 700 affordable houses, including 400 for social rent, will be built as part of the development which is excellent news for the region.”
West Lothian’s Executive Councillor for Education, David Dodds, added:
“We are delighted to have reached a deal with the Scottish Government and Winchburgh Development Ltd that supports the plans to expand Winchburgh.
“Winchburgh represents the right development in the right place and will help meet the demand for people looking to find a home for their family or business in West Lothian, which is one of the fastest growing areas in Scotland.
“Key to the development is the delivery of new state-of-the-art schools for Winchburgh in the council’s largest ever single capital investment. West Lothian already has one of the best school estates in the country, giving a platform to help our young people achieve their full potential and support life-long learning for the whole community.”
Sir Tom Hunter, Founding Partner of WCC paid tribute to the Scottish Government and West Lothian Council for their support for the development:
“Both West Lothian Council and the Scottish Government have played a critical role in securing this long-term development for Scotland.”
CALA chief executive Kevin Whitaker added:
“We are delighted to be partnering with West Coast Capital to help fund and deliver a high quality, sustainable development that will bring multi-tenure housing, education and infrastructure to West Lothian.”
The total package of support from Scottish Government includes a standby facility of up to £15 million to West Lothian Council in support of its borrowing for schools as well as a £26.8 million loan to Winchburgh Development Ltd, from the Building Scotland Fund to support the delivery of housing related infrastructure.
The Building Scotland Fund is a precursor to the Scottish National Investment Bank and will aim to make available up to £150 million by 2021 for the development of new affordable and private sector housing, the development of modern industrial and commercial property and business-led research and development.
A package of support to unlock the Winchburgh development formed part of the Scottish Government’s commitment through the Edinburgh and South East Scotland City Region Deal.
The Scottish Government’s overall investment in the Edinburgh and South East Scotland City Region Deal will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people in the area.
The Building Scotland Fund loan to Winchburgh is in addition to £50m already pledged as part of the City Region Deal for housing related infrastructure.
More on the plans for the Winchburgh Village development.