science park investment

Science Park Investment

October 2016 Review

2

Equivalent Yield Movements

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

Yiel

d P

erce

nta

ge

Equivalent Yield Movement

Office - Rest of South East Monthly Equivalent Yield Office - Rest of UK Monthly Equivalent Yield

Source IPD, 2016

Investor Trends

Investor Category Appetite/Cash availability Trend

Private Investors Green

Private Equity Amber

Property Companies Amber

Annuity Funds Green

Other Institutional Funds Amber

Local Authorities Green

Foreign Investors Amber

Green - strong and growing Amber - modest and not growing Red - poor or in decline

BEST Network – Jan 2016

• Acquired by US private equity investor Angelo Gordon and UK property company Trinity Investment Management for circa £95m

• Comprised Kent Science Park, the Wilton Centre, Langstone Technology Park, the Hexagon Centre in Manchester and Edinburgh Technopole

4

2016 Science Park Investments

5

Citylabs, Manchester – July 2016

• Manchester Science Partnerships announced a £60m investment in two new laboratory and office buildings alongside the Central Manchester hospital

• Anticipating start on site in 2017 of Citylabs 2.0

• Follows successful investment by MSP and Bruntwood into Citylabs1.0, partly with European funding


Phase 2 CBC – October 2016

• First building to be pre-let to Abcamplc

• 100,000 sq ft shell and core laboratory building

• To be forward funded by developers Cambridge Medipark Ltd

6


7

Newcastle Science Central – June 2016

• £65m of investment in two office buildings

• Both buildings are to be let to the City Council who will then underlet to businesses

• Potential additional investment by investors


8

Oxford Science Park – Jan 2016

• Magdalen College acquired the 50% stake held by M&G Investments to take full control

• £18.1m acquisition

• Funded by placing of £30m of loan notes with an institutional investor over a 25 year period at 3.32%

• Balance of funds to be invested in new buildings


9

Silverstone Technology Park– June 2016

• MEPC investment in delivering 125,000 sq ft of speculative space


NETPark– June 2016

• Announced award of Local Growth Fund investment of £6.8m

• Will enable the introduction of infrastructure to open up 26 acres of expansion land

10


London EAST– June 2016

• Announced award of Local Growth Fund investment of £500k to enable the refurbishment of laboratory and office space

• Funding also from SOG Group (£2.5m) and £925k of funding from Barking & Dagenham LBC

11


Exeter Science Park – September 2016

• Go-ahead given for construction of 18,500 sq ft of spec space

• Project is a joint venture between Devon County Council, Exeter University, East Devon District Council and Exeter City Council

• Funding partly received from the Local Enterprise Partnership

12


13

Innovation Birmingham

• Extension to Faraday Wharf funded by £2.5m from Local Enterprise Partnership

• Funding for iCentrum provided by loan from Birmingham City Council


Norwich Research Park – April 2016

• Awarded Enterprise Zone status following support from LEP

• Investments being proposed by local authorities

14


Phase 4 & 5 – Malvern Hills Science Park

• Phase 4 funded by Worcester County Council and Malvern Hills District Council

15


16

Thames Valley Science Park

• New 75,000 sq ft building under construction

• Funding provided by owners Reading University using funds generated from residential development land owned by the University


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