Legal & General and property firm Bruntwood have struck a deal with the Greater Manchester Pension Fund to invest in the UK’s science, technology and innovation sector.

GMPF’s investment is part of a £500m additional funding for Bruntwood SciTech, a specialist property provider founded by L&G and Bruntwood to support the growth of the life science and technology sectors. 

The £500m of new equity includes GMPF’s injection of £150m, alongside investment from existing shareholders, L&G and Bruntwood, through cash and asset transfer.

The new capital will be used to expand and redevelop existing science and technology campuses and city centre innovation hubs, delivering additional lab and office space in Manchester, Birmingham, Leeds, Liverpool, Glasgow and Cambridge, across a secured 3.6m sq feet development pipeline. 

Laura Mason, chief executive of Legal & General Capital, said: “This partnership with Greater Manchester Pension Fund is testament to the strength of the platforms we have created and the track record of our investments. It is particularly special to Legal & General given our long history of investment in and around Manchester. 

GMPF was selected following a “competitive process for new equity funding partners” that saw active discussions with UK and global institutional investors, said L&G.

According to the insurer, GMPF is the first local government pension scheme to make a direct and active investment into a UK-wide science, technology and innovation specialist property platform. 

Councillor Gerald Cooney, chair of the GMPF, said: “We’re investing from society for society by deploying our capital to benefit the UK’s regional economies for the long term, helping develop the innovation infrastructure they need in order to scale in world-leading workspaces and supporting them to attract the best and most highly skilled talent, enter new markets and be supported in accessing new funds.”

Created in 2018, Bruntwood SciTech offers office and laboratory space, a range of scientific services, and specialist business support to help companies in the science, technology and innovation sectors to form, collaborate, scale and grow.

The firm aims to set up a £5bn UK-wide portfolio that can support 2,600 high-growth businesses by 2032.

Bruntwood SciTech has developments underway including Citylabs 4.0 in Manchester - a health innovation hub - Birmingham’s ‘smart building’ Enterprise Wharf and a new dedicated digital and technology hub at Glasgow’s Met Tower.

Commenting on the latest partnership, Kate Lawlor, CEO of Bruntwood SciTech, said: “The UK’s real estate market is in a challenging period, but this deal, which will stand out as one of the most significant transactions this year, is about three organisations aligned in both their visions and commitment to investing for the long term. It underlines our absolute confidence in our business model and proposition’s success, and we can now realise it at scale across more locations.” 

Bruntwood and L&G were advised by Eastdil and GMPF by CBRE.

Legal and property advisers were Freshfields Bruckhaus Deringer, Addleshaw Goddard, Eversheds Sutherland, Mills & Reeve, JLL, Deloitte, Greenberg Traurig, Grant Thornton and PwC.

Other insurers are moving fast to invest in the science and technology sector. In the UK, Aviva announced a £1bn investment in the London Cancer Hub with developer Socius earlier this month. Elsewhere, AXA has strengthened the healthcare sector using AXA IM Alts’ global healthcare private equity strategy, which invests in companies with innovative and affordable solutions to address global health issues.