BLACKSTONE’S BIOMED REALTY ANNOUNCES PLANS TO DOUBLE THE SIZE OF ITS UK LIFE SCIENCES PORTFOLIO

• Blackstone portfolio company BioMed Realty acquires 15-acre Cambridge International Technology Park and 27-acre plot at Granta Park in Cambridge

• Estimated £850 million investment expected to deliver approximately 800,000 square feet of in-demand Grade A purpose-built lab and office space in Cambridge, creating up to 2,700 jobs

• Acquisitions mark vote of confidence from Blackstone in the UK and the growth of the nation’s pioneering life sciences sector, and are supported by BioMed’s 870,000 square feet UK portfolio currently 100% fully leased

BioMed Realty owns and operates 14 million square feet of mission-critical lab office space throughout the US and UK – helping 250+ clients discover and advance the next generation of medicines and therapies. (Photo: Business Wire)

SAN DIEGO--(BUSINESS WIRE)--In a major boost to the UK’s life sciences sector, Blackstone portfolio company BioMed Realty plans to deliver approximately 800,000 square feet of additional high-quality purpose-built lab space, following the acquisition of two new sites in Cambridge.

BioMed, a leading provider of real estate solutions to the life science and technology industries, has acquired Cambridge International Technology Park (CITP), a 15-acre site on Fulbourn Road, from Abstract, and a 27-acre land plot at Granta Park from The Welding Institute (TWI). The proposed two new sites are still subject to planning consent.

Today’s announcement would see a doubling of BioMed’s current life sciences real estate in Cambridge and support the creation of up to 2,700 new jobs.

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.

Prime Minister Boris Johnson 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 of 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.”

Latest survey 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.

Blackstone and BioMed remain committed to driving growth through delivering sustainable buildings that minimise energy and water consumption, champion sustainable local transport initiatives, and encourage more investment from current and new businesses into the local economy.

BioMed entered the Cambridge, UK market in 2012 and has expanded to become the largest private owner of life science space in Cambridge. During this time, BioMed has created a vibrant life science ecosystem to support growth and opportunities for all stages of life science companies. BioMed’s Babraham Research Campus and Granta Park currently provide incubator space, scale up space for growth, and headquarter space to established enterprises such as Illumina, Gilead, AstraZeneca and Pfizer. The acquisitions of these two new development sites provides additional opportunities for companies to grow within BioMed’s portfolio and stay in the region.

Bill Kane, President, East Coast & UK Market at BioMed Realty, stated, “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, said, “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.”

About BioMed’s UK Portfolio

BioMed is the largest private owner of life sciences space in Cambridge, UK, supporting 22 life science companies at all stages. BioMed’s Babraham Research Campus and Granta Park currently provide incubator, scale up, and headquarter space totalling 870,000 square feet.

Granta Park is BioMed’s flagship life sciences complex in Cambridge. The development, which is part-owned by TWI and hosts some of the company’s own tenants, is already home to 30 of the world’s largest life sciences companies and research organisations − including AstraZeneca, Pfizer, Illumina and Cancer Research UK − creating a formidable cluster of collaboration and innovation that employs more than 3,700 people.

The locations are anchored by world-leading academic and research institutions, such as nearby Cambridge University, deep talent pools and capital providers. The locations benefit from good road and rail links, helping partner tenants attract and retain talent.

BioMed is owned by Blackstone Property Partners Life Sciences, Blackstone Real Estate’s long-term, perpetual capital, core + return life sciences strategy.

About BioMed Realty

BioMed Realty, a Blackstone portfolio company, is a leading provider of real estate solutions to the life science and technology industries. BioMed owns and operates high-quality life science real estate comprising 14 million square feet concentrated in leading innovation markets throughout the United States and United Kingdom, including Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge, UK. In addition, BioMed maintains a premier development platform with 2.8 million square feet of Class A properties in active construction to meet the growing demand of the life science industry. To learn more about BioMed Realty, visit biomedrealty.com and follow the company on Twitter @biomedrealty.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $684 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Contacts

BioMed
Blackstock Consulting, London.
Tom Roberts, director +44 7722 440999 / tom@blackstock.co.uk
Billy Moran, senior account manager +44 7540 659036 / billy@blackstock.co.uk

Blackstone
Hanbury Strategy

Jan Meinicke
jan.meinicke@hanburystrategy.com
+44 7504 195699

Niamh Fogarty
niamh.fogarty@hanburystrategy.com
+44 7946 813843

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ABSTRACT MAKES FURTHER SITE ACQUISITION AND SUBMITS PLANS FOR BIGGEST NEW OFFICE AND LABORATORY CAMPUS IN CAMBRIDGE

CGI Image shows Building 3 of Cambridge International Technology Park for which detailed planning consent has been submitted.

Mark Glatman's Abstract Securities has announced that its associated company, Abstract (Cambridge) Limited, has completed the purchase of a second and adjoining site in Fulbourn Road Cambridge for its Cambridge International Technology Park scheme, increasing its total ownership to 15.26 acres (6.177 ha) of development land.  It has now submitted a planning application for around 500,000 net sq ft of laboratory enabled offices, aimed at life sciences, biotechnology and more traditional office occupiers. The site wide infrastructure and the first buildings will be ready for occupation in 2023. The completed development should have a value between £400m and £500m.

The Cambridge International Technology Park, currently comprising open farmland zoned for business use, is adjacent to Peterhouse Technology Park, which is the location of the global headquarters of Arm plc. The land lies south east of the City Centre core, around 2.5 miles from the Railway Station and gives easy access to the M11 and A14.

Mark Glatman, Chief Executive of Abstract, said: “We jumped at the opportunity to buy the balance of this allocated land, after our initial purchase last summer, and we believe that this is a fantastic opportunity to create a new science and technology destination in the Cambridge market. As with all Abstract schemes, we are focused on providing buildings of the highest quality, with great environmental credentials, but this scheme will also be shaped by what has been learnt through the pandemic and I am confident that the wellness offering will be second to none, particularly as occupiers start encouraging their teams back into the workplace.

We are excited to be developing in Cambridge. This is a unique market and the opportunity to create Cambridge International Technology Park, the largest new science destination in the City for many years, will help harness growth and investment into science and knowledge-based businesses, appealing to those companies looking to expand and grow organically as well as companies looking to upgrade from dated first generation space in the City. The additional land has increased the net floor area we can deliver from 300,000 sq ft to around 500,000 sq ft as well as providing much better access to the Technology Park. 

Again, we are delighted to have worked on the purchase with Peterhouse, the oldest College in Cambridge, founded in 1284, and we will be maintaining a close relationship throughout the development process in order to realise our aligned ambitions for the land.

Now we have completed this further site acquisition, Peterhouse will retain the freehold ownership of the land and have granted Abstract on each site a 175 year ground lease which will attract a 3% ground rent after buildings are completed and let.

Abstract have retained Scott Brownrigg to design their proposals for the site which will provide a range of grade A office buildings capable of being occupied by a variety of users for multi or single occupation, but particularly focused on the technology, science and knowledge-based sectors.  Buildings will be highly sustainable, while providing flexible space suitable for a range of end user needs, particularly important given the diverse range of occupiers in the Cambridge market. Bowmer & Kirkland have been appointed to build out the scheme.”

 Christopher McPherson, Development Director of Abstract Securities, said: “With the planning application submitted, our focus is now on mobilising the construction team as soon as consent is given, and we are targeting a start on site early this Summer.  We have applied for detailed consent on the first building of around 105,000 sq ft, and our intention is to complete this, together with the infrastructure for the entire scheme as a first phase by Summer 2023.  We are also looking to start four further buildings, currently ranging from 75,000 sq ft to 250,000 sq ft as soon as possible, either for single or multi occupation. In all we will be able to accommodate lettings upwards of 12,500 sq ft and the buildings are designed for both office and laboratory users.  We can discuss more specialised requirements with potential occupiers should this be of interest.  The Technology Park will provide a spacious, occupier friendly environment with easy access to the City Centre and will be a great place to work.  There is nowhere else in the City which can offer this amount of new development on a single site.’’

Bidwells represented Peterhouse. Abstract were advised by Pinsent Masons and Peterhouse by Mills and Reeve.  Bidwells and Cheffins are retained letting agents for the Cambridge International Technology Park.

For information about the proposed development please contact:

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

Christopher McPherson (christopher.mcpherson@abstractsecurities.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

ABSTRACT AGREES MAJOR PRE-LET AND FORWARD FUNDING IN BRISTOL

Mark Glatman's Abstract Securities has announced that its wholly owned subsidiary - Abstract (Bristol) Limited – has completed an agreement for lease for the letting of the final phases of its 100 Bristol Business Park development, comprising in excess of 132,000 sq ft net, to Babcock Integrated Technology Limited, together with a sale of the resulting investment to Aviva Investor’s Lime Property Fund Limited for consideration in excess of £55m.

This represents one of the biggest lettings in the Bristol out of town office market for many years. The new campus consolidates Babcock’s long-term occupation in the Region and the combined phases will provide Babcock with a new Grade A office facility in excess of 218,000 sq ft net comprising two buildings each of c86,000 sq ft, a smaller office of c40,000 sq ft and c6,500 sq ft of A1/A3/A4 space which will be sublet by Babcock in due course to appropriate tenants to provide a complementary offering to the Business Park.

The site, speculatively acquired by Abstract in December 2016, was formerly the headquarters of Du Pont and comprises 7.3 acres. This announcement follows on from the letting of Phase 1 of the development comprising 86,000 sq ft, in July 2019 to Babcock, also funded by Lime Property Fund

Bristol Business Park is an established office park situated five miles north of Bristol City Centre with excellent transport links and within easy access of the M32, M4 and M5 Motorways. In addition, Bristol Parkway Railway Station lies within 10 minutes’ drive, providing a regular Inter City service to London Paddington, within 1hr 30 mins. Major occupiers on the Park include: ALD Automotive, Boeing, Motability Finance, QinetiQ, Thales and the University of the West of England.

Babcock has agreed a 15-year full-repairing lease, at a commencing rent of approximately £2.67 million per annum, subject to five yearly rent reviews linked to CPI + 1%, collared and capped at two per cent and four per cent per annum.

Lime Property Fund is a secure income long lease property fund managed by Aviva Investors. The fund targets property investments let to strong tenants on leases with inflation-linked or fixed-rental uplifts and lease terms of 15 years plus.

Mark Glatman, Chief Executive of Abstract Securities, said: “We are delighted to be delivering the next phases of buildings for Babcock in Bristol, and, yet again, we have been able to procure efficiencies of design and delivery which drives a highly competitive but excellent corporate workplace in keeping with a number of buildings we have delivered for Babcock across the UK over recent years. Our design and delivery teams have done another fantastic job in bringing this development forward in the current climate and the trusted relationships with Babcock and with Aviva have proved robust over recent weeks despite global uncertainty.’’

Jon Hall, Managing Director for Technology at Babcock, said: “We’re delighted that the campus plans are progressing with work on Phase 2 due to commence shortly. The Babcock Technology Centre, which opened in summer last year, is a modern working environment designed with our people and customers in mind. The future build will enable us to enhance current ways of working and promote a creative environment where innovation can thrive. It delivers a Bristol-based business and technology hub promoting collaboration with a range of stakeholders.”

Kris McPhail, Fund Manager, Aviva Investors, said: “We are pleased to extend our work with Abstract, a company with a long track record of delivering high-quality office accommodation for corporates. This transaction is expected to provide our institutional clients with long-term inflation-linked cashflows and consolidates the occupation of a strong tenant into two additional new buildings. These are exactly the type of investments we are actively targeting for the Lime Property Fund.”

Phase 1 of the Bristol Business Park development has been shortlisted at the British Council for Offices (BCO) Awards 2020 in the Corporate Workplace category following the judging panel visit in January. Winners will be announced in October.

Abstract was unrepresented in the letting and investment sale. DTRE acted on behalf of Aviva Investors. Lambert Smith Hampton advised Babcock.

Pinsent Masons advised Abstract in documenting the transaction. Addleshaw Goddard acted for Aviva and DWF acted for Babcock.

Bowmer & Kirkland have been appointed as main contractor by Abstract. Keppie Design are retained as architect. For more information contact: Mark Glatman (mark.glatman@abstractsecurities.com)

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ABSTRACT COMMITS TO SPECULATIVE OFFICES IN CAMBRIDGE

Mark Glatman's Abstract Securities has announced that its wholly owned subsidiary - Abstract (Cambridge) Limited – has exchanged contracts to acquire a 9.17 acres (3.71Ha) site at Fulbourn Road Cambridge, with Cambridge College, Peterhouse, from the Wright’s Clock Land Charity. Abstract propose to speculatively build around 300,000 sq ft of offices with car parking, subject to detailed discussion with the local planning authority. 

Following on from several successful speculative office schemes across the UK over the last 7 years, this project represents a major investment by Abstract in the Cambridge office market where supply constraints, coupled with demand, especially from life sciences, biotechnology and other more traditional office users, remains high. 

Abstract have been granted a long leasehold interest by Peterhouse who will retain the freehold ownership of the land.

The site, currently comprising open farmland zoned for business use, is adjacent to Peterhouse Technology Park, also owned by Peterhouse, which is the location of the global headquarters of ARM plc. The land lies south east of the city centre, around 2.5 miles from the railway station and gives easy access to the M11 and A14.

Abstract have retained Scott Brownrigg to design their proposals for the site which will provide a range of grade A office buildings capable of being occupied by a variety of users for multi or single occupation, but particularly focused on the technology, science and knowledge based sectors.  As with all Abstract schemes, a highly sustainable and environment focused approach will be adopted, while providing flexible space suitable for a range of end user needs, particularly important given the diverse range of target occupiers in the Cambridge market.

Mark Glatman, Chief Executive of Abstract Securities, said: “We are really excited to be developing in Cambridge. This is a location which we have followed closely for many years and, against a backdrop of so much uncertainty in the world today, we have no hesitation in committing to speculatively build here at the current time. Our blend of occupier focused skills, and tried and tested delivery platform, means that we can quickly deliver first class space into a unique market and befitting its highly skilled workforce. We believe Cambridge will be a key engine room to growth as our economy recovers over the coming years.

We are delighted to have worked on the purchase with Peterhouse, the oldest College in Cambridge, founded in 1284, and we will be maintaining a close relationship throughout the development process in order to realise our aligned ambitions for the land.’’

Bidwells represented Abstract and Peterhouse in the acquisition. Cheffins represented the vendor.  Abstract were advised by Pinsent Masons and Peterhouse by Mills and Reeve.

For information about the proposed development please contact:

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

Christopher McPherson (christopher.mcpherson@abstractsecurities.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 

ABSTRACT DOUBLE IN BASINGSTOKE

Mark Glatman’s Abstract Securities have announced that they have let ‘The Florence Building’ in Basingstoke, to Sovereign Housing Association, and subsequently sold the entire share capital of the Company which owns the asset, on behalf of its shareholders, to LGIM Real Assets (Legal & General). 

Legal and General has bought the building on behalf of its LPI (Limited Price Inflation) Income Property Fund for a purchase price of approximately £29m.

While the property was marketed at rental levels up to £28.50 psf, the whole building was taken by Sovereign on a new 20 year lease subject to minimum and maximum uplifts linked to RPI at review.   The structure of the lease resulted in an asset price yield close to 4% which enabled a substantial rent subsidy for the premises which, including all car parking, reduced the commencing rent payable.

‘The Florence Building’ represents Abstract’s most recent “uncompromising value”, office development, providing 61,415 sq. ft. plus 203 car spaces in a new multi-storey car park. The property is in Basing View, the central office core for the Town, and is the first large speculative office development to commence in the Town Centre for over 15 years. The development completed in July 2018.

Sovereign is one of the largest housing associations in the Country providing over 56,000 homes for around 130,000 people in housing need across the South and South West of England and the Isle of Wight and building around 1,600 new homes each year to rent or buy.

Sovereign was formed in November 2016, as the result of a merger between Spectrum Housing Group and Sovereign Housing Association.  ‘The Florence Building’ will become the new Central Services Hub for the organisation.

“Christopher McPherson, Development Director of Abstract Securities, said: “The letting to Sovereign underpins our confidence in Basingstoke as a business destination, with its excellent transport links, first class amenities and high-quality work force, and our decision to speculatively build here is wholly vindicated by this long term commitment to the Town by a major employer.  This is a huge endorsement for Basingstoke. We have generated good tenant interest since the building completed, but Sovereign were nimble and decisive. A number of other potential occupiers will be disappointed’.

Mark Glatman, Chief Executive, added, “Once again we have seen potential in a market which has been long overlooked, but where the fundamentals are good, and where there is a large catchment of skilled labour. We have delivered a new Grade A office building, attracted good occupier interest, and agreed a sensible leasing structure which provides value for all concerned at a substantial discount to office rents in the South East. We have shown again that we can offer occupiers a significant cost advantage when they relocate to one of our buildings and Legal & General, with whom we have worked before, were an obvious purchaser.’’

Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, commented, ‘’This is an excellent buy for the fund, offering a secure long-term income stream off a low base which provides a hedge to inflation and strong underpin to the investment.  We continue to seek public sector deals with long let assets and investment grade covenants for the Fund and will remain active in this market.’’

The Florence Building was designed by TP Bennett. Bowmer & Kirkland was the contractor.  The solicitors representing the parties were Pinsent Masons acting for Abstract, Clarke Willmott acting for Sovereign and Clifford Chance representing Legal & General.  DTRE acted for Legal & General in the investment acquisition. Abstract were unrepresented. Savills and RARE were the retained letting agents.

Visit www.theflorencebuilding.com.

Attached image shows Abstract’s ‘Florence Building’ in Basing View, Basingstoke. -Ends-

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