Manchester-based Bruntwood SciTech said it has secured an additional £100 million as part of its financing facilities from HSBC UK, Lloyds Bank, NatWest and Santander UK.
Bruntwood SciTech — a joint venture between Bruntwood and Legal & General — said it is “the UK’s leading property provider dedicated to the growth of the science and technology sector.”
It said the funding will enable it 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.”
£50 million of the fund will be utilised for the next phase of development to get underway at the new Circle Square neighbourhood within the Manchester Oxford Road Corridor innovation district.
No.3 Circle Square will be a 15-storey, 267,000 sq ft hub of workspace “designed to facilitate collaboration and creative innovation” and follows the completion and full occupation of No.1 and No.2 Circle Square.
New businesses locating to No.3 Circle Square will become part of a growing tech community, joining the likes of Hewlett Packard Enterprise, Roku and Autocab — recently acquired by Uber.
Bruntwood SciTech said it now has a £380 million financial package to support its growth — a £250 million term loan and £80 million revolving credit facility, both of which are sustainability linked, as well as a £50 million green loan for No.3 Circle Square.
Bruntwood SciTech CEO Kate Lawlor said: “We are committed to a net zero future within the world-class infrastructure we build and provide for science and technology businesses and we continue to set ourselves ambitious targets to meet this goal.
“This new funding agreement enables us to accelerate our growth both sustainably and at pace, so that we can provide the specialist facilities businesses in the innovation sector need in line with demand and with minimal environmental impact.
“We look forward to commencing construction on No.3 Circle Square soon as well as our future development pipeline across the UK.”
Richard Butterfield, relationship director, real estate and housing at Lloyds Bank, said: “Bruntwood SciTech remains one of the UK’s true success stories – a business with sustainability and the industries of tomorrow running through its core.
“This financial package will enable it to take the next step on its journey, by building No.3 Circle Square – which will house some of the most exciting tech businesses in the North West – and continuing to improve the green credentials of the rest of its portfolio.
“We are looking forward to continuing to support businesses like Bruntwood SciTech that are focused on greening the built environment.”
Andy Clarke, director at NatWest said: “NatWest are delighted to be providing our continued support to Bruntwood SciTech with this latest Green funding.
“The funding will enable further growth in the science, technology and innovation sector and we look forward to supporting the delivery of the next phase of Circle Square as well as Bruntwood SciTech’s wider development pipeline across the UK.”
Matt Jones, senior director, real estate finance at Santander UK said: “Bruntwood SciTech is committed to building sustainable buildings, reducing its carbon footprint, and developing areas to improve biodiversity, and Santander UK is proud to support its development plans with this latest funding.”
Shoosmiths acted on behalf of the lenders and Addleshaw Goddard for Bruntwood SciTech, with CBRE providing valuations.