Lloyds Bank Commercial Banking has provided a £50 million (€56.7 million) financing through its Green Lending Initiative to a UK science parks joint venture.
The loan was provided to Manchester Science Partnerships, a public-private partnership, which is backed by shareholders including Manchester-based landlord Bruntwood as well as local universities.
The three-year funding package will be provided at a margin discount, in line with Lloyds’ £1 billion ‘green’ commercial property lending initiative, launched in March 2016, which provides margin reductions of up to 20 basis points on loans that finance energy-efficient schemes.
Under the terms of its loan, which is the first of its kind to be completed by the bank in the North West of England, MSP has agreed to a series of sustainable covenants.
This includes committing to more than £600,000 of investment in sustainable improvements to its existing estate; reducing the annual energy intensity of all its assets by 3.5 percent a year and increasing the amount of energy its buildings use from renewable sources by a further 10 percent.
The new agreement refinances the existing £35 million loan agreement for the Citylabs and Manchester Science Park campuses and also includes the recently completed state-of-the-art 70,000 square feet Bright Building, which is located at Manchester Science Park.
MSP’s Alderley Park Mereside campus is not included within the scope of the refinancing.
“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,” said Allan MacKenzie, head of Scotland and the North for Lloyds commercial real estate’s private Groups team.
In December last year, Lloyds signed the first development finance deal under its green lending initiative, providing a £39.9 million loan to BlackRock Real Estate.
Also last month, the bank provided a £50 million facility through its green lending scheme to Ei Group, formerly Enterprise Inns, the UK’s largest leased and tenanted pub company.
Lloyds has now arranged around £900 million of lending to support firms prioritising sustainability.