Asset manager Federated Hermes has secured £376m (€433m) in financing for the UK’s Milton Park science and technology park from lenders led by existing partners Barings Real Estate.

Federated Hermes said it secured the five-year financing for the Oxfordshire park, led by Barings Real Estate with the support of HSBC UK. The new funding replaces a £200m mortgage loan that recently matured.

Milton Park is managed by Federated Hermes and held in a joint venture on behalf of major institutional clients, including Canada Pension Plan Investment Board (CPP Investments) which holds a 50% interest in the joint venture. Milton Park is developed by MEPC, a real estate development platform of Federated Hermes.

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. Following the adoption of Milton Park’s second generation LDO (a 10 day simplified planning regime permitting up to 4.2m sqft of development) 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.”

Mark Russell, CIO for Federated Hermes Real Estate, said: “Milton Park is a prime example of how our Real Estate business continues to evolve towards thematic real estate strategies that respond to societal needs and structural undersupply in sectors such as innovation and technology, all while continuing to focus on delivering resilient, long-term returns for our clients.”

Chris Bates, head of Europe real estate debt origination at Barings, said: “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, said: ”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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