Bruntwood SciTech has secured an additional £500m investment for its property development and management venture aimed at supporting the growth of the UK’s life science and tech sectors. The Greater Manchester Pension Fund has come on board as a shareholder alongside existing partners Legal & General and Bruntwood. This funding will be utilised to expand the firm’s existing campuses and city centre hubs across the UK, creating much-needed lab and office space to support 2,600 high-growth businesses by the year 2032. The partnership has more than £1.5bn in assets across nine campus locations and 31 city centre innovation hubs, offering support and community for 1,100 high-growth startups, scaleups and global businesses.
“The investment from GMPF demonstrates the strong impact and proposition Bruntwood SciTech has developed, and we are excited to bring in a like-minded third-party investor.” said Kate Lawlor, CEO of Bruntwood SciTech, praising the move as an indication of the joint commitment of the organisations involved. Chris Oglesby, executive chair of the company and CEO of Bruntwood,”In GMPF we have found a partner who shares mutual strategic vision, values, cultural alignment and passion for the key sectors of the UK economy which have the biggest potential for growth.”
The capital will also enable Bruntwood to expand into additional R&D intensive regional cities. “Several developments are already underway that will support the growth of city-wide like-minded ecosystems for AI, MedTech, diagnostics, genomics, FinTech, EdTech and digital health businesses,” said Oglesby.
This latest funding round raises Bruntwood SciTech’s equity to £1.3bn, making it the UK’s largest dedicated property platform serving the country’s innovation economy. This type of funding is vital for the UK’s goal to become a global science and technology superpower by 2030. Transitioning from a carbide-based economy to a green and digital economy, the financial support from these funds can help regenerate the UK’s struggling towns and cities and create highly-skilled jobs, increasing productivity and driving wage growth.
Laura Mason, CEO of Legal & General Capital, said that “By bringing Greater Manchester Pension Fund alongside us, we can further scale our impact and deliver on a shared purpose to use society’s capital for society’s benefit.”
Bruntwood SciTech intends to create a £5bn portfolio across the UK to support high-growth companies and create thriving cities. The portfolio will offer 4.8m sq ft of specialist workspace, support, and like-minded communities for 1,100 high-growth start-ups, scaleups and global businesses. Gerald Cooney, Chair of GMPF, added “We’re excited about how we can now help to bring forward Bruntwood SciTech’s pipeline of transformational, world-class developments and for a future in which we spread its impact even more so in its existing cities, and into new ones.”
This deal solidifies the confidence of the partners in the company’s business model and proposition’s success, particularly in a challenging and unpredictable market impacted by COVID-19. The funding is aimed at long-term investment in innovative businesses and their need for the infrastructure to succeed. The partnership has already contributed to the development of AI, MedTech, diagnostics, genomics, FinTech, EdTech and digital health businesses, and will continue to support the growth of the UK’s R&D sector.