ABSTRACT DISRUPTS SOARING RENTS IN LIFE SCIENCE MARKET AND PROVIDES INVESTOR BOOST IN CAMBRIDGE

PLANNING APPLICATION SUBMITTED FOR NEXT PHASE OF SOUTH CAMBRIDGE SCIENCE CENTRE

Abstract, developer of South Cambridge Science Centre (SCSC) located in the 'Golden Triangle' (Cambridge, Oxford and London), has submitted a new planning application for a further 44,650 sq.ft. laboratory building.

This new building would bring Abstract's total development footprint at SCSC to 182,900 sq.ft. of world-class lab space.

Cambridge has become a global centre for the science sector but is currently restricted by a significant lack of 'best-in-class' lab space. This shortage has caused rents to soar, deterring businesses from moving their operations to the City.

With escalating rents eating into business' funding, leaving the sector ill-equipped to attract and retain the best talent, this lack of new lab space leaves organisations marooned in out-of-date, tired spaces that neither support their work or represent the future-facing, innovative research these organisations are doing.

Recent figures from commercial property specialists Cushman & Wakefield show that demand for science space in the Golden Triangle has surged to its highest level since 2015. There is now a real shortage of laboratory space in Cambridge, which heavily relies on the sector for employment and investment. 

Rents have risen to around £70 per square foot, a new record high, leaving science firms unable to move, expand or attract new talent and inspire existing teams.

Mark Glatman, Chief Executive of Abstract, commented:

"In addition to soaring rents and a lack of new space being built, there are several developers sitting on land that they bought at the peak of the market, for upwards of £7 million per acre, at a time when building costs and interest rates were much lower. These developers continue to hold the land, inactive, while they wait for improved economic conditions.

"As a result, several large-scale laboratory schemes that were due to be completed in 2025/2026 have stalled, with developers and investors having decided not to build.

"We are now seeing a perfect storm, with less available space and exponentially higher rents, making the search for affordable lab space more challenging than ever before. The demand on the very small amount of space currently available is exceptionally high."

Abstract are well advanced with the first phase of its top-class laboratory development – where the specification will be equal to, or better than, the very best competing buildings.

The first phase of 140,000 sq. ft. of labs will be completed by the first quarter of 2025, with works to the second phase to commence in June 2025.

Mark Glatman continued: "Vitally, thanks to strategically and well-timed land purchases, this lab space will be available, fully fitted and operational, for only £55 per square foot.

For a business taking 50,000 square feet, this will represent an extraordinary saving of at least £1 million per year, compared to other local science parks.

"From the perspective of a life science sector investor, the ability to save £1m per annum in operational overheads is hugely attractive, as this saving can instead be spent on the research and development of products, rather than on over-inflated real estate.

"A company moving into our first phase would be fully operational, with a bespoke fit-out, in early 2025."

Abstract may also consider direct investment into science organisations, understanding the challenges of sourcing funding.

Life Science Park - Research & Development Site | South Cambridge Science Centre (scambssc.com)

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Image shows: Abstract's South Cambridge Science Centre

For media information, please contact Lisa Mennie at Skylark PR, lisa@skylarkpublicrelations.com, 07825225414

For investment enquiries please contact Christopher.mcpherson@abstractsecurities.com

ABSTRACT STARTS FIRST PHASE OF SPECULATIVE LABORATORY CENTRE IN SAWSTON, CAMBRIDGE

A CGI image is attached of Abstract's forthcoming South Cambridge Science Centre scheme. Abstract has now started on site at the first phase of flexible laboratory accommodation aimed at life sciences and biotechnology occupiers, which will eventually comprise around 190,000 sq. ft. of much needed new laboratory space in Cambridge.

Mark Glatman's Abstract Securities has announced that its associated company, Abstract Mid-Tech Limited, has today speculatively started work on site at the first phase of its state-of-the-art development, aimed at life sciences and biotechnology occupiers, named South Cambridge Science Centre (SCSC).

The first building to be delivered at the Science Centre, a three-storey R&D development of c145,000 sq. ft. with parking for 269 cars and 225 bicycles, will be completed and fully operational by early 2025. A subsequent phase comprising an additional c45,000 sq. ft. building is planned as part of a repositioning of the wider Dales Manor Estate into a new Life Sciences destination in Cambridge.

SCSC, which received detailed planning consent in March 2023, is being developed on a brownfield site in Sawston, which offers easy access from Cambridge City Centre (just six miles away) and sits close to Babraham Research Park, Granta Park and Unity Campus - an established cluster of South Cambridge life science, biotechnology, pharmaceutical and research occupiers.

The new building will be Net Zero Carbon in operation; BREEAM ‘Excellent’ and offer an EPC rating of ‘A’.

Mark Glatman, Chief Executive of Abstract, said: “Having been granted detailed planning consent, we are delighted to have now started on site to create much needed new science and technology lab space within the South Cambridge Cluster. Furthermore, our very low land price means we can create top quality accommodation at a much lower rental than competing developments across the Cambridge market.

“South Cambridge Science Centre is in an established region of Cambridge where the availability of quality laboratories is extremely limited, whilst there is huge demand from fast growing companies in this sector. Tight land supply and a complex planning regime has contributed to this lack of supply and so we anticipate that delivering our speculative development to this market will be very well received.

‘’We are creating laboratory space suitable for a wide range of organisations, offering maximum flexibility in a landscaped setting, and sitting alongside the proposed Cambridge South-East Transport route (CSET), which will eventually link the neighbouring science and research parks, Biomedical Campus and Cambridge City Centre.

“With current rents in this market pushing towards £70 per sq. ft, we will be delivering best in class space at a significant discount.”

Christopher McPherson, Development Director of Abstract Securities, said: “We are committed to delivering buildings of the highest quality that are also operationally Net Zero Carbon and that meet and surpass multiple environmental benchmarks.

“To our knowledge, no other building in the Cambridge market has higher environmental standards than SCSC. Given the requirement for world-class yet affordable laboratory space in the area, we anticipate high demand for SCSC, which will be available for occupation in around 16 months in early 2025 and we are in early discussions with several organisations who recognise the need to move early to satisfy their growth ambitions. We are also developing designs for the next phase of development and would envisage submitting planning shortly.’’

Michael Laird are architects for the development and Bowmer & Kirkland are main contractor.

DTRE, Bidwells, and JLL are retained letting agents for the South Cambridge Science Centre.

For information about the proposed development please contact:

Mark Glatman (mark.glatman@abstractsecurities.com) or

Christopher McPherson (christopher.mcpherson@abstractsecurities.com)

www.scambssc.com

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For media information, please contact Pauline Gregory, Pauline@skylarkpublicrelations.com /07833 490964
or Lisa Mennie, lisa@skylarkpublicrelations.com/ 07825 225 414

Editor’s notes:-

Established in April 2000 by Mark Glatman, the Abstract Group of Companies specialises in commercial property development and venture capital financing. The management team at Abstract is highly experienced at working directly with major property owners and corporate end users, and has developed in excess of 1.4 million sq ft of new office buildings across the UK in the last 7 years, providing new offices for companies including Babcock plc, KPMG, Aker Solutions, Virgin Atlantic, Pension Protection Fund, Zurich UK, and Wood plc, amongst others.
www.abstractsecurities.com

ABSTRACT GRANTED DETAILED PLANNING CONSENT FOR AFFORDABLE LABORATORY CENTRE IN SAWSTON, CAMBRIDGE

A CGI image is attached of Abstract's proposed South Cambridge Science Centre scheme.  Abstract has received detailed planning consent for the first phase of flexible laboratory accommodation aimed at life sciences, and biotechnology occupiers, which will eventually comprise around 180,000 sq. ft. of much needed new laboratory space in Cambridge.

Mark Glatman's Abstract Securities has announced that its associated company, Abstract (Mid Tech) Limited, has obtained detailed planning consent for the first phase of a brand-new development, aimed at life sciences and biotechnology occupiers, which will be named South Cambridge Science Centre (SCSC). The first building of c140,000 sq. ft. will be ready for occupation in early 2025. 

SCSC will be developed on a brownfield site in Sawston, approximately six miles south of Cambridge City Centre and close to Babraham Research Park, Granta Park, and Unity Campus and an established cluster of South Cambridge life science, biotechnology, pharmaceutical and research occupiers.

Mark Glatman, Chief Executive of Abstract, said: “We saw a fantastic opportunity to acquire and reposition around five acres of land, to create much needed new science and technology lab space at a sensible and affordable rental.  The scheme is in an established location in the Cambridge market where the availability of quality laboratories is almost zero against unprecedented demand for this type of space. Tight land supply and a very difficult planning regime means that there are huge barriers to providing the type of accommodation that is in so much demand.  We are delighted to have the ability to get on and deliver and will be breaking ground soon.

‘’We can deliver great quality laboratory accommodation for a wide range of different user types and the building is designed to offer maximum flexibility in a landscaped setting, which will eventually sit alongside the proposed Cambridge South East Transport route, linking the neighbouring science and research parks, biomedical campus and Cambridge City Centre.

“Potential end users in the market are currently faced with rents in the high £60’s per sq. ft. but we have deliberately positioned the project to offer the best quality flexible laboratory space, aiming for rents under £50 psf. We feel that companies that are focused on growth will be looking for more affordable accommodation and we have been able to assemble a scheme to achieve this pricing point.’’

Abstract are working up plans for a second phase of development on the site for a further building of c40,000 sq. ft. and planning will be submitted in coming weeks.

Christopher McPherson, Development Director of Abstract Securities, said: “As with all Abstract schemes, we are focused on providing buildings of the highest quality, with great environmental credentials, but we also aspire to ensure that this scheme is operationally Net Zero Carbon.   We believe that there is no other building in the Cambridge market that  has a better carbon footprint than SCSC.  A great deal of thought has gone into designing space that will meet the exacting requirements of several different occupier types whether biology or chemistry biased, and we have a high degree of flexibility in how we can accommodate different users.  Given the supply demand imbalance and the more affordable pricing of our scheme, it won’t be a surprise that we are already at the early stage of discussions with a number of parties.’’

Matt Smith of retained agent, DTRE, commented: ‘’With the named tenant demand for laboratory space in the highly competitive Cambridge market currently totalling in excess of 1.2m square feet and vastly outpacing supply, it has left existing and potential new occupiers with limited options for purpose-built laboratory space.

“The decision by Abstract to deliver the scheme speculatively is an exciting development in the Cambridge market and will allow occupiers to have access to the same highly specified but more competitively priced CL2 laboratory space without having to face the costs of other schemes, where rents are now trending towards £70 psf.

“In addition, the South Cambridge Science Centre has been designed with sustainability at the forefront, including the use of renewable energy sources and will be delivered as a Net Carbon Zero scheme which is becoming an increasingly important consideration for occupiers.’’

It is understood that Peterhouse retains the freehold ownership of the land and has granted a 175 year ground lease which will attract a ground rent after buildings are completed and let.

With its extremely competitive and potentially highly reversionary rental, Abstract is also in early discussions about forward funding their project.

Abstract have retained Michael Laird Architects to design their proposals for the site. Bowmer & Kirkland have been appointed to build out the scheme with a start on site in early June.

Bidwells represented Peterhouse. Abstract were advised by DTRE.  Bidwells, DTRE and JLL are retained letting agents for the South Cambridge Science Centre.

For information about the proposed development please contact:

Mark Glatman (mark.glatman@abstractsecurities.com) or

Christopher McPherson (christopher.mcpherson@abstractsecurities.com )

Website:  www.scambssc.com

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For media information, please contact Pauline Gregory,Pauline@skylarkpublicrelations.com/07833 490964 or Lisa Mennie,lisa@skylarkpublicrelations.com/  07825 225 414

BLACKSTONE’S BIOMED TO INVEST £850 MILLION IN CAMBRIDGE LIFE SCIENCE PARK EXPANSION

The Two Proposed Sites Are Still Subject to Planning Consent

BioMed is the largets private owner of life science space in Cambridge. (CoStar)

By Bert Erik ten Cate

CoStar News

Blackstone Group plans to invest around £850 million in the 800,000 square feet expansion of laboratory space in Cambridge International Technology Park. 

The investment, through Blackstone's BioMed Realty company, creates up to 2,700 jobs.

BioMed, which owns an 870,000-square-feet life science portfolio, has acquired Cambridge International Technology Park, a 15-acre site on Fulbourn Road, from Abstract, and a 27-acre land plot at Granta Park from The Welding Institute. The proposed sites are still subject to planning consent.

The UK’s life sciences sector is a crucial part of the British economy, supporting 250,000 jobs and contributing more than £80 billion to GDP each year. As the largest life sciences market in the UK, Cambridge — the birthplace of stem cell research and artificial intelligence — is seen as an epicentre of research and innovation and is home to more labs than anywhere else in the UK.

“This investment is hugely welcome news for Cambridge and the UK as a whole," said Prime Minister Boris Johnson. "The city was home to some of the country’s greatest scientific discoveries and I’m confident that the support of Blackstone’s BioMed Realty will mean there are many more to come."

BioMed entered the Cambridge market in 2012 and has expanded to become the largest private owner of life science space in the city.

Mark Glatman's Abstract Securities completed the purchase of a second and adjoining site in Fulbourn Road Cambridge for its Cambridge International Technology Park scheme in February, increasing its total ownership to 15.26 acres of development land and enabling plans to be lodged for a 500,000-square-foot scheme in the red-hot Cambridge offices and laboratory market.

The plans were lodged by associated company Abstract (Cambridge). At the time it projected the completed development would have a value between £400 million and £500 million.

CoStar News revealed last year that Abstract had exchanged contracts to buy the first chunk — a 9.17 acre site — with Cambridge college Peterhouse, from the Wright’s Clock Land Charity, with plans to speculatively build around 300,000 square feet of office space.

Abstract is one of the most successful regional office developers in recent years with schemes in Glasgow, Aberdeen, Basingstoke and Croydon among others.  It has a reputation for picking up early-stage development opportunities in markets set for rapid improvement.

DTRE advised Blackstone

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BLACKSTONE’S £850M SHOT IN THE ARM FOR CAMBRIDGE LIFE SCIENCE SECTOR

by James Buckley

Proposed sites could create 800,000 sq ft of purpose-built lab space

What Blackstone’s BioMed Realty is buying Cambridge International Technology Park and an additional site at Granta Park

Why The sites would meet the growing demand for space among technology, science and knowledge-based companies to create vaccines, develop new treatments and help respond to major global health challenges

What next The proposed sites, which are still subject to planning consent, could create an additional 800,000 sq ft of purpose-built lab space

Blackstone’s BioMed Realty is to invest £850m into the UK’s fast-growing life sciences sector, having bought two sites in Cambridge.

BioMed has bought Cambridge International Technology Park (CITP), a 15-acre site on Fulbourn Road, from Abstract, and a 27-acre land plot at Grant Park from The Welding Institute (TWI).  The wider Granta Park scheme is already owned by BioMed.

The proposed sites, which are still subject to planning consent, could create an additional 800,000 sq ft of purpose-built lab space.

The move would double BioMed’s current life sciences real estate holdings in Cambridge.  As the largest life sciences market in the UK, Cambridge – the birthplace of stem cell research and artificial intelligence – is seen as an epicentre of research and innovation and is home to more labs than anywhere else in the UK.

Mark Glatman’s Abstract Securities submitted a planning application in February for the 500,000 sq ft life sciences scheme at CITP with a gross development value of between £400m and £500m.

Cambridge International Technology Park

Prime minister Boris Johnson, who will announce the deals in New York today, said: “This investment is hugely welcome news for Cambridge and the UK as a whole.  The city was home to some of the country’s greatest scientific discoveries and I’m confident that the support Blackstone’s BioMed Realty will mean there are many more to come.

“The jobs created by this investment are exactly the kind we want to see more of in the UK – high-skilled and future-facing, reflecting what the UK does best”.

The UK’s life sciences sector is a crucial part of the British economy, supporting 250,000 jobs and contributing more than £80bn to GDP each year.

The latest data shows all of Cambridge’s available lab space is currently under offer, potentially locking out promising start-ups from the market and slowing the growth of life sciences companies in the UK.

BioMed’s two new sites would meet the growing demand for space among technology, science and knowledge-based companies to create vaccines, develop new treatments and help respond to major global health challenges.

 BioMed entered the Cambridge market in 2012 and has expanded to become the largest private owner of life science space in Cambridge.

BioMed’s Babraham Research Campus and Granta Park currently provide incubator space, scale up space for growth, and headquarter space to businesses such as Illumina, Gilead, AstraZeneca and Pfizer.

Bill Kane, president, East Coast and UK market at BioMed Realty, said: “State-of-the-art life science facilities are a critical component to the speed at which scientific research is accelerating.  BioMed is proud to meet the needs of this truly dynamic industry, helping companies to incubate, scale up and grow.

“These new developments at CITP and  Granta Park will provide much needed life science space for existing and new companies, further advancing Cambridge as a global home for research while supporting the local economy”.

James Seppala, head of real estate in Europe at Blackstone, added: “Life sciences remains one of Blackstone’s highest conviction investment themes.  Together with BioMed Realty, we are committed to growing this area of investment for the long-term and providing the high-quality space that is needed to bring life-saving products and therapies to market and ensure the UK’s future success as a global leader in vaccine and drug development”.

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