Barings Real Estate has provided Hermes Investment Management and Canada Pension Plan Investment Board (CPPIB) with a new seven-year €224.4m (£200m) fixed rate mortgage loan to refinance their jointly owned science and business park in Oxfordshire. Located in the Thames Valley region of the UK, Milton Park accommodates leading global science and technology companies as well as emerging businesses, including a number of spin-out organisations from the nearby University of Oxford. It is managed and developed by MEPC Limited (MEPC) on behalf of the joint venture partners. At 250 acres, Milton Park is one of Europe’s largest and most successful integrated business, science and technology parks and home to over 250 organisations employing over 9,000 people.
Chris Taylor, Head of Private Markets at Hermes Investment Management, said: “This loan is a key transaction for our new Milton Park partnership with CPPIB and is a testament to the strength of Milton Park, MEPC as the asset manager, and the partner sponsors. The new Barings senior loan will enable MEPC to continue to efficiently manage and grow Milton Park on behalf of the partnership and the partners. We are looking forward to the future of Milton Park with the support of Barings, who demonstrated their enthusiasm for the asset and partnership throughout the refinancing process, and we consider them to be an ideal real estate-minded and aligned long-term partner.”
James Dipple, CEO of MEPC, commented: “With the new loan in place and the ongoing support of Hermes Investment Management and CPPIB, we have a really solid platform to continue to invest in Milton Park. This will include further development to meet the growing demand for high quality science and business space in the region, which will be fast-tracked through planning by our Local Development Order – enabling us to grow Milton Park by over a million square feet in the next ten years and deliver new buildings quickly to meet occupier needs.”
Chris Bates, Head of Core Mortgage Europe at Barings, stated: “The future of Milton Park is exciting and we are pleased to support Hermes Investment Management and CPPIB in their plans for the park and look forward to working with them and MEPC in its execution. Milton Park is an established hub for a growing community of businesses at the cutting edge of their field and Hermes Investment Management and CPPIB’s plans for the park will only enhance the offering and real estate value. The Milton Park loan represents our largest single facility in Europe to date and builds on the continued growth of our mortgage business.”
Eastdil Secured LLC and Bryan Cave Leighton Paisner LLP acted for Hermes Investment Management and CPPIB, while Barings was represented by Herbert Smith Freehills LLP.
