Bruntwood SciTech has secured an additional £100m green funding package as part of its financing facilities from HSBC UK, Lloyds Bank, NatWest, and Santander UK.
The joint venture between Brentwood and Legal & General said the funding would enable it to accelerate plans to deliver much needed space for life sciences, tech and innovation businesses across the UK.
The terms of the loan are linked with sustainability targets which include 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.
The JV partners will use £50m of the funding to enable the next phase of development, which consists of 267,000 sq ft of cutting edge workspace at No.3 Circle Square, to get underway at the new Circle Square neighbourhood (pictured) within the Manchester Oxford Road Corridor innovation district.
Kate Lawlor, chief executive officer at Bruntwood SciTech, 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, added: “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. Addleshaw Goddard acted for Bruntwood SciTech, with CBRE providing valuations.
