9+ years after the question was asked:
It sounds like this application can be best handled using the two-phase fluid domain, which was first introduced in R2015b in Simscape. A simplest form of the model can consist of reservoirs (for boundary inlet/outlet conditions), controlled flow sources (for variable speed pump), pipes (as simple heat exchanger), temperature source (as heat source), and sensor blocks. The control part of course can be modeled in Simulink.
In newer releases, the Simscape Fluids add-on library also contains more realistic heat exchangers and valves, which may be useful for this application.
https://www.mathworks.com/help/physmod/simscape/two-phase-fluid-models.html?s_tid=CRUX_lftnav
https://www.mathworks.com/help/physmod/hydro/tpf-components.html?s_tid=CRUX_topnav