£360m partnership aims to transform science and technology sector
Property group Bruntwood and investor Legal & General Capital have created a 50:50 joint venture called Bruntwood SciTech in the largest science and technology transaction in the real estate market this year.
The £360m partnership aims to transform science and technology in England’s regional cities and has the ambition of adding 5m sq ft of space in the next 10 years.
It estimates an additional 20,000 high-value jobs would be created by that growth.
Bruntwood SciTech will be chaired by Bruntwood chief executive Chris Oglesby, who believes the partnership “can greatly accelerate the scale and pace of what we can achieve”.
He wants to create a 6.2m sq ft science and technology property portfolio worth £1.8bn in the next decade.
Faraday Wharf at Innovation Birmingham
The new company will pool 1.3m sq ft of assets focused in Manchester, Birmingham and Leeds, including Innovation Birmingham, which Bruntwood acquired earlier this year. The city centre campus has three buildings totalling more than 80,000 sq ft – iCentrum, Universities Centre and Faraday Wharf.
Other assets in the Bruntwood SciTech portfolio include Manchester Science Park, Platform in Leeds, and the internationally-recognised life science campus in Cheshire, Alderley Park.
Legal & General’s investments in the city include the recent acquisition of Broadway Plaza, the funding of Birmingham’s 240,000 sq ft office scheme, 3 Arena Central, and the redevelopment of the Lewis Building.
Nigel Wilson, chief executive of Legal & General, said: “Although the UK is a great place to do business, years of chronic underinvestment have led to poor productivity, inadequate real wage growth and muted economic growth. Science and technology will be key to revitalising the UK economy and driving job creation.
“We need to keep investing to support the development of our UK regional cities.”
Bruntwood SciTech’s properties are already home to more than 500 science and technology businesses ranging from digital start-ups to global life sciences companies.
It will initially focus on developing out its existing assets as well as expanding within the Northern Powerhouse and Midlands Engine regions. Longer term it plans to seek opportunities for investment in other UK regional cities.
The two businesses will bring together capital, property and intellectual assets to support its ambitions.
Oglesby believes Legal & General “shares our vision” on how to unlock growth in science and technology.
He said: “Our focus is on creating thriving cities – breathing life into places where knowledge-based businesses can start and scale, driving growth for the UK economy,” he said.
Dr David Hardman
Bruntwood SciTech will be run by Bruntwood’s current chief commercial officer Phil Kemp and its leadership team will include Dr David Hardman MBE, managing director of Innovation Birmingham.
Bruntwood was founded in Manchester in 1976 by Chris’s father, Michael, and now has more than £1bn of assets. In 2017 it generated a pre-tax profit of £71.6m on revenues of £131.5m.
Bruntwood Works has been created as its regional investment business and its commercial office portfolio in Manchester, Liverpool, Leeds and Birmingham will by run by Ciara Keeling, who becomes chief executive.
Graham Barnes and Colin Thomasson of CBRE advised Bruntwood, alongside a team from Addleshaw Goddard. Savills, EY and CMS represented Legal & General.
