Manchester-based Bruntwood SciTech – the commercial real estate joint venture between Bruntwood, Legal & General and Greater Manchester Pension Fund – said it has secured a significantly increased loan facility totaling £480 million.

Bruntwood SciTech said that as part of the deal it welcomes a new lender, Barclays, alongside the existing consortium of HSBC, Lloyds Bank, Natwest and Santander that is 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 £480 million financial package to support its growth and sustainability ambitions comprising a £430 million investment facility, of which £350 million is a term loan and £80 million is a revolving credit facility — and a £50 million 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,” said Bruntwood SciTech.

“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 secured £500 million of additional investment and had welcomed the UK’s largest local authority pension fund, Greater Manchester Pension Fund (GMPF), to the partnership.

Bruntwood SciTech was founded by Legal & General and Bruntwood in 2018 to support the growth of the life science and tech sectors.

“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,” said Bruntwood SciTech.

“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.”

Ross Mackay, Director, Corporate Real Estate at Barclays, said: “We are delighted to join the banking syndicate for Bruntwood SciTech and support its next evolution of growth. The green funding will help unlock some key environmentally responsible projects across the UK regions and nations, while supporting job growth in an innovative sector.”

Peter Nelson, Relationship Director, Real Estate Finance at HSBC, said: “HSBC UK values its longstanding relationship with Bruntwood SciTech and is delighted to continue its support through this sustainably linked facility which reflects our commitment to both the real estate and innovation sectors.”

Richard Butterfield, Relationship Director, Real Estate and Housing at Lloyds Bank, said: “Bruntwood SciTech has cemented itself as the premier property provider to the UK’s most innovative and fast-growing companies who will lead our transition to more sustainable energy sources in the future.

“This new funding will allow Bruntwood SciTech to continue this work and enter its next phase of growth, all while pursuing its own ESG ambitions. We’re looking forward to supporting more businesses that are boosting our knowledge economy in every corner of the country.”

Andy Clarke, Director, Real Estate Finance at NatWest, said: “We are proud to be providing our continued support to Bruntwood SciTech with this latest funding package.

“The green funding package will support further investment in the science, technology & innovation sector and will also support Bruntwood with their ambitions for a net zero future.”

Matt Jones, Senior Director, Real Estate Finance, Santander UK said: “Santander UK is delighted to continue our support to Bruntwood SciTech with this latest funding package which includes Sustainability Linked and Green Loans, to support high growth businesses access specialist workspaces in the UK.

“This funding also continues to support Bruntwood SciTech’s net zero ambitions as well as supporting the wider UK economic recovery. Thanks to our fellow club lenders who it was great to work with once again, we look forward to our ongoing collaboration in the future.”

Hill Dickinson acted on behalf of the lenders and both Addleshaw Goddard and Mills & Reeve for Bruntwood SciTech, with CBRE and JLL providing valuations.