Barings Real Estate has provided £200m (€224.7m) to refinance a business park in south-east England jointly owned by Hermes Investment Management and Canada Pension Plan Investment Board (CPPIB).

Hermes and CPPIB said they have agreed the new seven-year fixed rate mortgage loan to help manage and grow the Milton Park asset in Oxfordshire.

The 250-acre Milton Park is managed and developed by MEPC on behalf of the joint venture partners.

The office park serves as a hub for 250 business, science and technology companies, including a number of spin-off organisations from nearby University of Oxford.

Chris Taylor, the head of private markets at Hermes, 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 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.”

James Dipple, the CEO of MEPC, said: “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, the head of core mortgage Europe at Barings, said: “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.”

In July last year, CPPIB extended its partnership with Hermes with the acquisition of a 50% stake in Milton Park from the investment manager for £200m.

The two organisation already had a number of real estate joint ventures in the London office market, in a mixed-use development in Birmingham and in the Wellington Place development in Leeds. They had also invested together in infrastructure assets.