UK dedicated property platform Bruntwood SciTech has increased its green-backed funding loan facility to £480 mln (€562 mln) to support its growth and sustainability ambitions.
The deal expands their lending group by welcoming Barclays, joining forces with HSBC, Lloyds Bank, NatWest, and Santander who provided the initial funding. The existing lenders have also renewed their commitment by extending the loan term by three years.
The financial package consists of a £430 mln (€504 mln) investment facility, of which a £350 mln term loan and a £80 mln revolving credit facility; and a £50 mln (€58 mln) development facility.
The green loan is directly tied to Bruntwood SciTech’s sustainability goals, namely improving building energy efficiency (EPC ratings); reducing carbon emissions year-on-year; minimizing embodied carbon in new developments; and increasing renewable energy usage.
This aligns with their ambitious plan to achieve net-zero carbon emissions across all new developments (construction and operation) and become a fully net-zero business by 2050.
Kevin Crotty, CFO at Bruntwood SciTech, said: ‘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.’
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.’
The funding will support ongoing and future projects like No.3 Circle Square in Manchester's innovation district; refurbishments and improvements at Alderley Park life science campus; Phase 3 of Manchester Science Park's Greenheys development; and the initial phase of the £1.7 bn ID Manchester innovation district.
Bruntwood SciTech was legally advised by Addleshaw Goddard and Mills & Reeve, Hill Dickinson advised the lenders, while CBRE and JLL handled the property valuations.
Bruntwood SciTech is the commercial real estate joint venture between Bruntwood, Legal & General and Greater Manchester Pension Fund. It aims to create a £5 bn (€5.8 bn) UK-wide platform of specialist workspace that can support 2,600 high-growth businesses by 2032.