Glasgow City Council has secured another massive property-backed loan to help fund its historic £500 million equal pay settlement.

Canada Life Investments announced the completion of a £166 million, 30-year loan facility for City Property Glasgow, a wholly owned subsidiary of Glasgow City Council.

The loan is secured by three assets that are backed by 30-year leases to Glasgow City Council.

Those assets are: the Emirates Arena and Sir Chris Hoy Velodrome in Glasgow; Scotstoun Stadium and Leisure Campus, which is home to the Glasgow Warriors rugby team; and Glasgow’s Bellahouston Leisure Centre.

The transaction includes an £81 million index-linked tranche with an £85 million fixed-rate tranche.

Council leader Susan Aitken estimated around 12,000 Glasgow households would be positively affected by the equal pay settlement. 

Aitken said: “Hundreds of millions of pounds has been paid to thousands of our staff who had been denied equal pay for too long.

“That is a huge step from where we were two years ago and a really significant milestone on the road to delivering pay justice.”

Nicholas Bent, Head of Real Estate Finance at Canada Life Investments, added: “We are delighted to annouce this unique financing with City Property and the council.

“It definitely emphasises the positive impact that a long-term investment partnership can provide.” 

Conor Doyle, Business Development Director at Canada Life Investments, said: “This transaction is a great fit for both us and City Property: it provides the borrower with competitive rates for the long-term while also retaining control of its assets and for us it is a high quality loan to an experienced property owner with the backing of the council.

“It also provides further diversification to our growing loan book which is secured by quality assets across the UK and now, because of another recent financing in the Netherlands, in continental Europe as well.”