Bruntwood SciTech, a joint venture between Bruntwood, Legal & General, and the Greater Manchester Pension Fund, has announced a substantial £480m finance package to fuel its expansion and sustainability goals. The new funding arrangement includes a £430m investment facility, comprising a £350m term loan and an £80m revolving credit facility, alongside a £50m development facility. This financial boost is set to propel the company’s ambitious plans for growth across the UK’s key innovation districts.

Adding to its financial consortium, Bruntwood SciTech welcomes Barclays as a new lender, joining the ranks of HSBC, Lloyds Bank, NatWest, and Santander. The agreement also extends the term of the loan by three years, solidifying the company’s long-term financial stability.

Crucially, the loan terms are closely aligned with Bruntwood SciTech’s Environmental, Social, and Governance (ESG) commitments. These include enhancing the Energy Performance Certificate (EPC) ratings of its buildings, reducing carbon intensity and embodied carbon in new developments, and increasing the procurement of renewable energy. These initiatives are part of the venture’s comprehensive strategy to achieve net-zero carbon emissions by 2050, encompassing both construction and operational phases of new developments.

The funding will notably advance several key projects, such as the construction of No.3 Circle Square in Manchester’s Oxford Road Corridor innovation district, and support further enhancements at Alderley Park, the UK’s largest single-site life science campus. Additionally, it will facilitate the third phase of Manchester Science Park’s one million sq ft masterplan, Greenheys, and kickstart the development of ID Manchester, a £1.7bn innovation district in partnership with the University of Manchester.

Kevin Crotty, CFO at Bruntwood SciTech, expressed enthusiasm for the venture’s growth trajectory and commitment to sustainability. He emphasized the strategic importance of the UK’s regional cities as catalysts for the country’s innovation economy, highlighting the critical need for office and laboratory space in these areas. Crotty’s comments underscore Bruntwood SciTech’s dedication to advancing its development projects, bolstering the UK’s position as a hub for scientific and technological innovation.