HBD x Factory, the joint venture between UK property developer HBD and international tech campus developer Factory, has announced HBD will buyout Factory for an undisclosed seven-figure sum.
This comes as Factory shifts its operational focus to its existing portfolio and new projects in its pipeline. The developers formed the joint venture to purpose innovation-focused real estate projects in the UK five years ago.
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The news follows the submission of plans to Cheltenham Borough Council for permission to build the £1bn Golden Valley Development, with an approved £95m funding agreement with the council for the delivery of the site's first building, the National Cyber Innovation Centre, and a £20m pledge from the Department for Levelling Up, Housing and Communities.
The National Cyber Innovation Centre, which gained £95m funding approval last month, will be a centre for learning which various businesses, schools and universities can rent out for education and training purposes. HBD said it hopes Golden Valley will attract businesses with a focus on science and technology in particular, building on the existing specialist cluster in cyber and the emerging AI, Deep Tech and Future Computing/Quantum sectors.
Adam Brady, HBD directory and board member of HBD x Factory, said: "Partnerships are core to HBD’s business and collaborating with Factory has been instrumental in advancing the Golden Valley Development. Factory’s involvement has been fundamental in establishing a robust foundation for our future growth and development in this dynamic field.”
The agreement includes HBD assuming responsibility for the venture’s operations, as Factory focuses its energy on other innovation campus developments, investing the funding from this transaction into new projects in its pipeline. Following the buyout, the joint venture will be renamed to reflect the new ownership structure.
Jeremy Bamberg, Factory, co-founder, added: "The recent planning submission, approved £95m funding agreement, and £20m commitment from government has allowed us to revisit our strategy. Achieving these milestones highlights our dedication to developing globally renowned innovation hubs in collaboration with local governments, developers, and landowners across the UK and Europe, a mission that remains unchanged as we transition to new projects.”
Cllr Mile Collins of Cheltenham Borough Council said: "Factory has provided very valuable support and advice to the Golden Valley project as demonstrated by the progress made thus far. We are thankful for the contribution and insights gained and wish them well as we move Golden Valley forward into the delivery phase.”
