Manchester Science Partnerships commits to green future under £50m deal

Science and technology park operator Manchester Science Partnerships (MSP) has secured a new £50m debt facility.

The funding package, spanning three years, will be provided at margin discount under Lloyds Bank Commercial Real Estate’s Green Lending initiative.

The loan is the first of its kind completed in the North West by the bank.

As part of the terms of the agreement MSP is committing to a raft of ‘green covenants’, which will include aiming to spend over £600k on sustainable improvements to its estate, cutting the annual energy intensity of its assets by 3.5% per year and increasing the amount of energy its properties use from renewable sources by 10%.

The new funding refinances the existing £35m loan for the Citylabs and Manchester Science Park campuses. It also includes the recently completed Bright Building, located in the heart of Manchester Science Park. MSP’s Alderley Park Mereside campus is not included.

MSP managing director Tom Renn said: “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.”

He added: “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 head of Scotland and the North for Lloyds Bank Commercial Real Estate’s private groups team, Allan MacKenzie, commented: “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.”