As part of the deal, Bruntwood SciTech, a joint venture between Bruntwood and Legal & General, has secured a £60m green loan to develop 400,000 sq ft of specialist workspace at No’s 2, 3 and 4 Circle Square in Manchester city centre. The scheme, which will provide 1.2m sq ft of workspace as well as 1,700 homes, is a joint venture between Bruntwood SciTech and Vita Group.
The deal also includes a £125m green investment loan secured across Bruntwood SciTech’s 1.7m sq ft portfolio. Under the conditions of the green loans, Bruntwood SciTech will secure a discount on its cost of funding if it achieves certain targets.
For the development loan, it will have to secure a BREEAM Excellent rating for the three new buildings and persuade occupiers to adopt good environmental practices. For the investment loan, it has agreed to invest £3.5m for environmental improvements and pledged to reduce the energy intensity of its portfolio by more than 10% over the lifetime of the loan
Lloyds led the deal and acted as green loan coordinator on the investment loan. Santander, NatWest, HSBC and Lloyds Bank took equal 25% shares in the combined £185m facility.
Kate Lawlor, finance director, Bruntwood SciTech, said: “This new funding agreement gives us the platform to accelerate our growth sustainably, providing customers with access to facilities tailored to their specific needs that have minimal impact on our environment.”
Rob Marriott, associate director, Lloyds Bank Real Estate and Housing, added: “What Bruntwood SciTech is doing at its sites across the North, Midlands and Leeds is important in providing the conditions that the science and technology sector needs to enable new investment, create jobs and drive innovation.
“By using our Green Lending Initiative, we’re able to help Bruntwood SciTech achieve its vision while supporting its sustainable investment in the future of the UK.”
Squire Patton Boggs acted on behalf of the lenders, with Addleshaw Goddard acting for Bruntwood SciTech and CBRE providing valuations.