Bruntwood SciTech secures £95 million sustainability-linked investment to fuel future expansion
By Bruntwood SciTech
The UK’s leading property provider dedicated to the growth of the science and technology sector, Bruntwood SciTech, has secured a new 3 year, £95m facility to fund its ambitious future growth and investment strategy.
The new sustainability-linked loan from NatWest, Lloyds Bank, Santander and HSBC UK extends Bruntwood SciTech’s existing £185m green loan, which it agreed with the club in 2018, to £280m.
Bruntwood SciTech, a 50:50 joint venture between Bruntwood and Legal & General, will use the funding to invest into the ongoing development of the UK’s largest single-site life science campus - Alderley Park - Manchester Science Park, Platform - the home of tech in Leeds and the commercial buildings at Circle Square - Manchester’s newest neighbourhood.
The funding will also be used to support new acquisitions, such as the recently announced 16.4 acre Melbourn Science Park in Cambridge, as well as the A development of the Innovation Birmingham Campus and the newly completed Citylabs 2.0, in Manchester, which is already fully let to leading global molecular diagnostics company QIAGEN for their new European Centre of Excellence for Precision Medicine.
The innovative funding package will see Bruntwood SciTech continue to receive a discount on its cost of funding by agreeing to fulfil bespoke sustainability-linked covenants across a number of initiatives including waste and recycling, green energy procurement and a pledge to reduce the energy intensity of its portfolio by more than 10% over the lifetime of the loan. Bruntwood SciTech already holds the ISO 50001 energy management standard and the latest funding will support it in becoming a gold standard low carbon company.
Kate Lawlor, CEO - Bruntwood SciTech, said: “Our innovation clusters are powering the future of the UK knowledge economy, providing the environments and ecosystems that companies in the science and tech sector need to form, scale and grow. We’re continuing to see significant demand for our specialist workspaces and labs and this new funding agreement gives us the platform to accelerate our growth responsibly and sustainably and perfectly aligns with our pledge to be Net Zero Carbon by 2030.”
Andy Clarke, Director at NatWest, said: “The funding provided by NatWest and the other banks will enable Bruntwood SciTech to continue to grow and expand it’s network of innovation districts in a way that is sustainable and environmentally-responsible as it drives forward the growth of the UK science and technology sector.”
Richard Butterfield, relationship director at Lloyds Bank, said: “As the UK looks to recover from the economic impact of the pandemic, high quality facilities for businesses operating in key growth areas such as the digital and life sciences sectors will be essential. Bruntwood SciTech continues the deliver these in abundance and we’re pleased to support its ambitious sites spread across the UK. Equally, Bruntwood SciTech is playing an important role in driving the ESG agenda and we’ve welcomed the opportunity to support them as Sole Sustainability Coordinator on this transaction as it looks to further incentivise environmental performance through its funding strategy.”
Matt Jones, Senior Director, Real Estate Finance, Santander UK said: ”Santander is delighted to be supporting Bruntwood SciTech with this latest funding, which will enable further growth and investment in the fast-moving science and technology sectors. We all have a part to play in supporting sustainable development and we look forward to working with Kate and the team at Bruntwood to positively contribute to the wider climate change agenda. Santander recently announced its ambition to achieve net-zero carbon emissions across the group by 2050, and we are committed to supporting our clients in their transition to a low-carbon economy. “
Bruntwood SciTech was advised by Addleshaw Goddard and the lenders were advised by Shoosmiths, with CBRE providing valuations.