Bruntwood SciTech gears up for ID Manchester start with £480m funding boost

The initial phase of development for the £1.7bn innovation district is one of several schemes to benefit from a new loan facility from Barclays, HSBC, Lloyds Bank, NatWest, and Santander.

Bruntwood SciTech has secured a £350m term loan from the banks, as well as a £80m revolving credit facility and a £50m development facility.

ID Manchester, a joint project from Bruntwood SciTech and the University of Manchester, is one of the most anticipated projects on the list to get a financial boost from the deal. The strategic regeneration framework for the 4m sq ft district was published last summer. ID Manchester was designated as a Greater Manchester investment zone earlier this year.

In addition to enabling the start of ID Manchester, the combined £480m is to go towards refurbishing and improving Alderley Park in Cheshire, completing No3 Circle Square in Manchester, and the redevelopment of the Greenheys site at Manchester Science Park.

The money is linked towards sustainability goals, such as the improving of EPC ratings, reduction of embodied carbon in new-builds, and the increasing use of renewable energy. This fits in well with Bruntwood SciTech’s own ambitions for its new developments to be net zero in construction and operation. The business itself wants fully net zero by 2050.

“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,” said Kevin Crotty, chief financial officer at Bruntwood SciTech.

“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,” he continued.

“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.”

Hill Dickinson represented the banks on the lending deal, while Addleshaw Goddard and Mills & Reeve acted for Bruntwood SciTech. JLL and CBRE provided valuations for the agreement.

In addition to green ambitions, Bruntwood SciTech has goals related to boosting the nation’s innovation economy. It aims to deliver £6bn of specialist workspace by 2032. Projects that are already in development will build 3.6m sq ft of lab and office space across Liverpool, Manchester, Leeds, Glasgow, Cambridge, and Birmingham.

Bruntwood SciTech is a joint venture between Bruntwood, Legal & General, and the Greater Manchester Pension Fund. GMPF is the newest addition to the partnership, having joined in October last year as part of Bruntwood SciTech’s £500m equity raise.