Bruntwood SciTech – the commercial real estate joint venture between Bruntwood, Legal & General and Greater Manchester Pension Fund, focused on serving the growth of the UK’s knowledge economy – has secured a significantly increased loan facility totalling £480m.
As part of the deal, it also welcomes a new lender, Barclays, alongside the existing consortium of HSBC, Lloyds Bank, NatWest, and Santander – responsible for the initial facility, with the term of the loan having also been extended by a further three years.
Bruntwood SciTech now has a three year £480m financial package to support its growth and sustainability ambitions; a £430m investment facility – of which £350m is a term loan and £80m is a revolving credit facility – and a £50m development facility.
The terms of the loan are also intrinsically linked to Bruntwood SciTech’s ESG commitments and are based on improving the EPC ratings of buildings; a year-on-year reduction in carbon intensity; a reduction in embodied carbon across new build developments, and an increase in renewable energy procurement.
These measures support Bruntwood SciTech’s ambitious decarbonisation plans which include aiming for all new developments to be net zero in both construction and operation – in communal areas – as part of their target to become a fully net zero business by 2050.
Specific to its expansion plans, this most recent funding will support the development of No.3 Circle Square within Manchester’s Oxford Road Corridor innovation district, which commenced construction in July last year; further refurbishments and improvements at Alderley Park – the UK’s largest single site life science campus; the third phase of Manchester Science Park’s 1m sq ft masterplan, Greenheys; and the initial phase of development for ID Manchester – a joint venture between Bruntwood SciTech and The University of Manchester to deliver a £1.7bn innovation district.
The funding follows Bruntwood SciTech’s announcement in October 2023 that it would be investing half a billion pounds into the UK’s innovation economy and has welcomed the UK’s largest local authority pension fund, Greater Manchester Pension Fund (GMPF) into the partnership, alongside existing shareholders Bruntwood and Legal & General.
Now the largest dedicated property platform serving the UK’s innovation economy, Bruntwood SciTech aims to create a £5 billion UK-wide platform of specialist workspace that can support 2,600 high-growth businesses by 2032, with a number of significant development projects already secured that will provide an additional 3.6m sq ft of much needed lab and office space across Manchester, Birmingham, Leeds, Liverpool, Glasgow and Cambridge. The funding will enable the Joint Venture to continue with its expansion plans at pace to support the burgeoning demand from life science, tech and innovation businesses across the UK with world-class infrastructure and specialist support.
Kevin Crotty, chief financial officer at Bruntwood SciTech, said:
“Following an exciting period of growth at Bruntwood SciTech, we are committed to pressing ahead with all of our development projects across the UK’s regional cities. Sustainability is a priority for us within every development and the loan’s ambitious KPIs are a clear sign of our commitment to further reducing our carbon footprint. This new funding agreement allows us to move quickly and capitalise on the momentum gained at the end of last year to further support the UK’s innovation economy and realise our ambition to support as many businesses as possible within that sector.
“Our regional cities hold the key to unlocking the UK’s growth potential, so we are excited to get underway with our most significant projects that will help to deliver much-needed office and lab space in the areas that need them most.”
