Bruntwood SciTech has secured a significantly increased sustainability-linked loan facility totalling £480m.
Barclays has joined the existing lending consortium of HSBC, Lloyds Bank, NatWest, and Santander, and the term of the loan has been extended by a further three years.
Bruntwood SciTech, which is a joint venture between Bruntwood, Legal & General and Greater Manchester Pension Fund, 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 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.
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, added: “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, added: “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 added: “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 Addleshaw Goddard and Mills & Reeve acted for Bruntwood SciTech. CBRE and JLL provided valuations.
