Bruntwood secures £140m sustainability linked loan

Leading property company, Bruntwood has announced the extension of its loan facility that will see its £240 million workspace portfolio funded by a sustainability-linked loan.   

The agreement has seen the firm’s existing £50 million Club Bank facility - a consortium of HSBC UK, NatWest, Santander and Barclays - increase to £140 million and extend by a further 12 months to early 2028. HSBC UK acted as the Sustainability Co-ordinator, while NatWest acts as the Agent. The majority of the extension has allowed Bruntwood to repay its retail bonds that were due in February.

The terms of the sustainability linked loan align with Bruntwood’s ongoing ESG commitments, namely; carbon intensity reduction, an increase in renewable electricity procurement and an increase in smart energy metering. 

Bruntwood has long championed the importance of a sustainable and fair future, becoming the UK’s first commercial property company to sign up to the UK Green Building Council’s Advancing Net Zero Programme, alongside a £9.7m investment into a wind farm in Scotland and developing decarbonisation strategies for all buildings across its portfolio. 

The facility covers Bruntwood’s £240 million workspace portfolio located across Manchester city centre, Greater Manchester, Cheshire, Leeds and Liverpool. This includes the £1 million transformation of South Central in Manchester city centre to provide new flexible suites for growing businesses, the recently refurbished Station House in Altrincham which recently underwent a partial refurbishment aimed at supporting and empowering SMEs and ongoing investment currently underway at Exchange Court in Liverpool city centre, due to complete in the next few weeks.

Looking ahead, Bruntwood also has plans to invest further into its workspaces across its portfolio using the loan to provide even more forward-thinking workspaces for ambitious businesses across the region. 

Rachel Brunt, Chief Financial Officer at Bruntwood, said: “Given our long-standing commitment to helping the UK to reach a net zero future, it’s fantastic to now see our financing facility align with these ambitions. Through the changes to our loan, we now have even more momentum to help us deliver forward-thinking, future-proofed assets fit for the workforce of tomorrow. We also know that ESG is only becoming more important to our customers, so this agreement is a clear sign to them that we are with them on their own sustainability journeys, and we will be here to support them along the way.”

Andy Clarke, Director, Real Estate Finance at NatWest, added: “NatWest are pleased to be providing our continued support to Bruntwood with this latest sustainability linked loan package. Bruntwood continues to invest in its workspaces, which is becoming increasingly important for businesses, and this funding package will support their future plans.”

Matt Jones, Senior Director, Real Estate Finance at Santander UK, said: “We are delighted to support Bruntwood in its sustainability journey, as the firm develops its portfolio of projects and moves towards its 2050 net zero targets. We look forward to continuing working with the Bruntwood team going forward.”

Robert King, UK Head of Commercial Banking Sustainability, HSBC UK, said: “This transaction re-affirms Bruntwood’s commitment to sustainability and demonstrates the various ways in which Bruntwood are enhancing the energy efficiency of their portfolio. The built environment plays a critical role in the UK achieving Net Zero by 2050, and we are proud to have acted as the Sustainability Co-ordinator and support this transaction.”

Jason Constable, Head of Real Estate for Barclays Corporate Banking, said: “We are delighted to have increased our support to Bruntwood through this sustainability linked loan. We are focused on helping businesses invest for growth, and deals like this are key as we look to continue backing clients in the North West and across the UK.”