Manchester Science Partnerships has agreed a £50m debt facility with Lloyds Bank Commercial Real Estate, in a three-year package which is the first deal of its kind completed by Lloyds in the region.
Under the terms of its loan, MSP has agreed to a series of ‘green covenants’. The organisation will commit to spending more than £600,000 in sustainable improvements to its existing estate; reducing annual energy intensity of all its assets by 3.5% each year; and increasing the amount of energy it uses from renewable sources by a further 10%.
The agreement refinances the existing £35m loan agreement for the Citylabs and Manchester Science Park campuses and also includes the 70,000 sq ft Bright Building, which opened in September at Manchester Science Park. Alderley Park is not included.
Tom Renn, managing director of Manchester Science Partnerships, said: “In supporting Manchester’s knowledge economy, we are committed to doing so responsibly by offering facilities that are sustainably built and operated.
“One of the many ways which MSP does things differently, is that we continuously look to new, innovative ways of working with investors and improving how we operate. As part of our long term legacy with CityVerve, the smart cities Internet of Things demonstrator based in Manchester, we will introduce emerging technologies that support the environment and reduce our energy costs.
“Lloyds Bank’s initiative has allowed us to restructure our debt facilities. We are grateful for their help and support as our long standing relationship with them continues. The discount we have been able to access allows us the headroom to further strengthen our assets, particularly as we look to start on site with Citylabs 2.0 & 3.0.”
Allan MacKenzie, head of Scotland & the North for Lloyds Bank Commercial Real Estate’s private groups team, said: “MSP is tackling environmental challenges head-on and we’re pleased that we can enable it to have an even greater impact as part of its debt refinancing.
“We also have a long-standing relationship with MSP’s largest shareholder Bruntwood, which is increasing its own focus on sustainability.”
Lloyds launched the £1bn fund in April 2016, working with environmental consultancy Trucost. Bruntwood became the largest shareholder in MSP in 2012. The other shareholders are Manchester, Salford and Cheshire East Councils, the University of Manchester, Manchester Metropolitan University and Central Manchester University Hospitals NHS Foundation Trust.