Northspring set to expand portfolio thanks to £37m loan from Cynergy Bank
Innovative ESG-focused office provider Northspring is set to expand its portfolio across the UK thanks to a £37m commercial investment loan from Cynergy Bank.
Founded in Manchester in 2020, Northspring provides a unique style of office space to companies offering high quality, all-inclusive builds. The spaces are designed with a focus on the physical and mental wellbeing of tenants – providing breakout spaces, gyms, roof spaces, bike storage and yoga.
Its portfolio currently consists of four offices in Manchester, two in Leeds and one in Birmingham. The properties all score highly for ESG, with features such as efficient lighting and EV charging points.
The new funding will enable Northspring to increase its portfolio to other cities across the UK to meet growing demand for these types of offices. The deal marks one of the largest loans for Cynergy Bank to date, highlighting its appetite for larger lending facilities.
Mark Morris, managing director at Northspring, said: “Having established high-profile, prominent office buildings in Manchester, Birmingham, and Leeds, the refinance enables us to expand our Northspring proposition to new cities. Many of our tenants have taken offices across multiple locations and the demand for expanding our footprint is clear.
“Cynergy Bank was able to provide a funding facility where all the buildings are up and running but full leasing is not complete – this was a key differentiator as some banks simply can’t handle that. The process with the team at Cynergy Bank was efficient and pragmatic.”
Morris Rothbart, managing partner at Seaford Finance, commented: “We are delighted to have introduced another institutional client, Investream, to Cynergy Bank. The team at Cynergy demonstrated a great deal of agility in structuring this complex loan facility, that both satisfied their credit committee’s requirements and balancing the sponsor’s expectations. We have no doubt Investream will be an asset to the bank’s loan book and will be a relationship to be nurtured over the coming years.”
Darren Fretwell, relationship director at Cynergy Bank, commented: “It was a pleasure to work with Seaford Finance on this opportunity. It was clear from day one that Northspring provide a very high quality office accommodation and tenant experience to match. It’s great to have Northspring as customers of Cynergy Bank and we look forward to developing our relationship with them.”