Federated Hermes has announced the completion of a five-year £376 million financing deal for Milton Park, one of the largest single-asset finance arrangements in the UK outside London.

The deal replaces the previous £200m mortgage loan, which recently matured. The transaction was led by existing lender Barings Real Estate with the support of HSBC UK.

The 300-acre park is managed by Federated Hermes and held in a joint venture on behalf of major institutional clients, including CPP Investments which holds a 50 per cent interest. Its development is handled by MEPC, the real estate development division 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 4.2 million sq ft 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, chief investment officer for Federated Hermes Real Estate, added: “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.”   

The transaction was supported by a consortium of advisors, including JLL as debt advisor, Bryan Cave Leighton Paisner,  providing legal counsel on the financing, and Addleshaw Goddard, advising on real estate legal matters.

HSBC UK Bank Plc acted as a lender, while HSBC Bank Plc served as the hedging counterparty. Legal representation for Barings and HSBC UK was provided by Stephenson Harwood.

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