MEPC’s parent company, Federated Hermes, has completed a five-year £376 million financing deal for Milton Park, the Oxfordshire-based science and technology campus, marking one of the largest single-asset financings in the UK outside London.
The new agreement replaces a previous £200 million mortgage loan that had recently matured. The transaction was led by existing lender Barings Real Estate, part of Barings LLC, with additional support from HSBC UK.
Located in the heart of Science Vale, just south of Oxford, Milton 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 stake.
The park forms part of the Oxford–Cambridge–London “Golden Triangle” and is home to over 280 organisations ranging from start-ups to global leaders in life sciences, biotech, green energy, healthtech, and advanced engineering.
Covering more than 300 acres, Milton Park comprises nearly three million square feet of floor space across 87 buildings, including offices, research facilities, mid-tech units, and more than 800,000 square feet of laboratories. The site also benefits from a growing range of on-site amenities. Development is overseen by MEPC, the specialist real estate 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 our relationship with partners including CPP Investments but also demonstrates global confidence in our long-term vision. This finance will ensure Milton Park retains its position as one of the UK’s leading research and innovation hubs.”
He added that the new funds will support Milton Park’s second-generation Local Development Order (LDO), which permits up to 4.2 million square feet of future development under a simplified 10-day planning regime.
Mark Russell, Chief Investment Officer for Federated Hermes Real Estate, commented:
“Milton Park is a prime example of how our real estate strategy aligns with societal needs in innovation and technology, while 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. Milton Park is a standout innovation campus, and this transaction underscores our commitment to high-quality, strategically located assets.”
Richard Holland, Senior Relationship Director, Real Estate Finance at HSBC UK, added:
“Milton Park is a significant asset in the UK’s science and technology ecosystem. Its scale, diversity and quality of occupiers highlight the sustained demand for space in high-growth, future-focused sectors.”
The transaction was supported by JLL as debt advisor, with legal counsel from Bryan Cave Leighton Paisner LLP and Addleshaw Goddard LLP. HSBC UK Bank Plc acted as lender, with HSBC Bank Plc serving as the hedging counterparty. Stephenson Harwood provided legal representation for Barings and HSBC UK.
Milton Park continues to be one of Europe’s largest single-ownership innovation campuses, bringing together world-leading science, technology, and engineering companies and driving growth across the Oxfordshire innovation ecosystem.
