Property specialist Bruntwood SciTech has secured another £100m sustainability-focused funding package from a consortium of banks as it bids to build a £5bn UK portfolio of specialist workspace by 2033.
Bruntwood SciTech is a joint venture between Bruntwood, L&G and Greater Manchester Pension Fund that develops science and innovation-focused workspaces in key UK cities.
It plans to use its latest funding boost to continue growing in its key cities of Manchester, Birmingham, Leeds, Liverpool, London and Cambridge. The group has 11 campuses and 31 city centre innovation hubs, which house more than 1,000 firms ranging from startups to global firms.
The latest funding package from Barclays, HSBC UK, Lloyds, NatWest and Santander UK takes Bruntwood SciTech’s total facilities to £580m. The three-year package now consists of a £530m investment facility – of which £450m is a term loan and £80m is a revolving credit facility – and a £50m development facility.
The green funding terms of the refinance include improving the EPC ratings of buildings, reducing the amount of embodied carbon in new build developments, and increasing renewable energy procurement.
Funding will support projects including development works at No.3 Circle Square in Manchester and more investment in Sister, -Bruntwood SciTech’s joint venture with The University of Manchester to deliver a £1.7bn new innovation district.
The group is also aiming to be fully net zero by 2050, and is already providing 100% renewable energy to all shared spaces in its portfolio through an investment in a wind farm in Ayrshire.
Kevin Crotty, chief financial officer for Bruntwood SciTech, said: “18 months on from announcing that Greater Manchester Pension Fund would be joining the joint venture, and that we’d secured an additional £500m of investment into the business to support growth of the science, tech and innovation sectors, we remain committed to delivering the ambitious development projects needed to help regional innovation clusters grow. The continued support of our financial partners in helping us to drive forward this work is hugely appreciated and is a show of confidence in our ability to meet this ambition.
“This funding facility will also enable us to continue putting sustainability at the heart of all our new and ongoing developments. As well as working hard to reduce our own carbon footprint, we’re also helping to make it easier for our customers to do the same. With the new funding, we will be able to move quickly and generate the momentum needed to deliver a more sustainable built environment for businesses to innovate, collaborate and grow within.”
Andy Clarke, director, real estate finance at NatWest, said: “NatWest are pleased to be providing our continued support to Bruntwood SciTech with this latest funding. The sustainably linked funding package will support further investment and growth in the science, technology & innovation sector, and will also support Bruntwood with their ambitions for a net zero future.”
Jason Constable, head of real estate at Barclays Corporate Banking, added: “We are pleased to extend our support for Bruntwood SciTech as the business continues to expand by delivering best in class, environmentally conscious workspaces for an innovative sector.”
Matt Jones, senior director, real estate finance at Santander UK, said: “We are delighted to continue supporting Bruntwood SciTech in their growth and sustainability journeys, as they develop their extensive portfolio of projects and move towards their 2050 net zero targets. We look forward to continuing working with the Bruntwood SciTech team going forwards
Richard Butterfield, director, real estate finance at Lloyds, said “Lloyds is proud to continue supporting Bruntwood SciTech as it delivers its ambitious growth plans and continues to invest in the UK’s most innovative, fastest growing, and economically important sectors. This sustainably-linked funding package will help the business continue its efforts to decarbonise existing and new developments.”
Peter Nelson, HSBC UK relationship director, said: “It is great to contribute to Bruntwood’s continued investment which is enabling growth of the innovation sectors in cities across the UK”
Lloyds acted as sustainability coordinator on the refinancing, with HSBC Bank plc acting as the facility agent. Law firm Hill Dickinson acted on behalf of the lenders and Addleshaw Goddard for Bruntwood SciTech, with CBRE and JLL providing valuations.
This month, Bruntwood SciTech opened specialist lab and office space Citylabs 4.0 at Manchester University NHS Foundation Trust’s Oxford Road hospital campus. GMI Construction Group led the build of the Sheppard Robson-designed development, with local teams working on the project including Arup, Hilson Moran, Gardiner and Theobald and Layers.
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