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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