£376 million financing boost for science and technology hub

A science and technology hub in Oxfordshire has secured new financing to support its growth.

Federated Hermes has completed a five-year £376 million financing for Milton Park, marking one of the largest single-asset financings in the UK outside London. 

The new facility replaces a £200 million mortgage loan that recently matured and was led by existing lender Barings Real Estate, with support from HSBC UK.

Philip Campbell, commercial director for Milton Park, said: “The successful completion of this financing represents a significant milestone for Milton Park. 

“It not only reflects the strength of the relationship with our partners including CPP Investments but also demonstrates how global lenders share confidence in our vision and long-term business plan for Milton Park. 

“I am delighted that we have been able to continue our longstanding partnership with Barings and to welcome HSBC UK onboard. 

“This finance will help ensure that Milton Park retains its position as one of the UK’s leading research and innovation hubs, enabling us to continue providing high-quality, flexible solutions for both existing and prospective occupiers of all sizes to pioneer their technologies.”

Situated in the heart of Science Vale, just south of Oxford, Milton Park is managed by Federated Hermes and held in a joint venture that includes CPP Investments, which holds a 50 per cent stake. 

The park hosts more than 280 organisations ranging from start-ups to global leaders in life sciences, biotech, healthtech, green energy, agritech, advanced engineering and professional services.

Covering more than 300 acres with nearly three million sq ft of space across 87 buildings, Milton Park is one of Europe’s largest single-ownership innovation campuses. 

Facilities include offices, research labs, mid-tech space and over 800,000sq ft of laboratory space, alongside a growing range of facilities to support tenants.

The financing was supported by a team of advisers, including JLL as debt advisor and legal counsel from Bryan Cave Leighton Paisner LLP and Addleshaw Goddard LLP. 

HSBC UK acted as both lender and hedging counterparty, with legal representation for Barings and HSBC UK provided by Stephenson Harwood.

Chris Bates, head of Europe real estate debt origination at Barings, added: “We’re delighted to continue our support of Federated Hermes and CPP Investments with the financing of Milton Park, a standout innovation campus in the UK. 

“This transaction reflects our continued commitment to backing high-quality, strategically located assets that drive long-term value for institutional investors.”

Richard Holland, senior relationship director, real estate finance at HSBC UK, added: “Milton Park is a significant asset in the UK’s science, technology and innovation ecosystem, and we’re pleased to support its continued development through this financing. 

“The Park’s scale, diversity and quality of occupiers, and strategic location reflect the sustained demand for space in high-growth, future-focused sectors, something we’re always committed to supporting. 

“We look forward to working with Federated Hermes and Barings as Milton Park enters its next phase.”

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