Stanhope is a London based developer and asset manager with over 30 years’ experience of delivering high quality developments that optimise value for its partners and the local communities it served. Stanhope is known for its strong partnership approach and innovative responses to complex urban development opportunities with specific expertise in London.
It has delivered 2.8 million sqm(30 million sq ft) & €47 billion(£40 billion) of end value, typically managing around €3.5 billion(£3 billion) of construction projects.
Stanhope’s first involvement in the life sciences sector was in 2014 with the refurbishment and extension of One Mabledon Place, a 10-storey, 8,360 sqm (90,000 sq ft) office building adjacent to the King’s Cross Knowledge Quarter.
The building was let to The Doctor’s Laboratory, the largest UK independent provider of specialised pathology clinical laboratory services to clinicians, hospitals and community health services.This triggered research into the emerging demand from life science occupiers for urban locations and led to projects including the British Library extension and Royal Street in London and, more recently,Oxford North.
We caught up with Charles Walford, Senior Development Director and Head of Life Sciences.
Since your first involvement in the life sciences sector 2014, what have you learned about how real estate and life sciences could work better?
It’s about finding a point of engagement, which historically didn’t happen a great deal. What we are seeing now is a growth in the number of conferences bringing together the real estate professionals and those deeply involved in the science, allowing the scientists to inform the real estate community about the type of product that they want. It’s about enriching your knowledge.
We attend many more science related conferences, and we talk to a wide range of investors in life sciences companies, particularly VC businesses, who have a vast knowledge. But we are also engaging with lawyers involved in M&A activity&fund
raising, and the universities and research institutes themselves to understand the tech transfer.
“We don’t have a shortage of brilliant people, and we don’t have a shortage of money to back new initiatives, but we do have a shortage of spaces in the right
places”.
Over your time operating in the sector have you seen a switch away from wet labs to dry labs for data and analytics?
The sector is moving rapidly and the relationship between science, technology, AI and big data is driving a demand for dry labs that will often require significant
power and cooling. The need to be near universities, often within an urban environment, is leading to some compromises because the right type of space simply is not available. Historically, the wet/dry lab split was about 60/40 and this has moved more towards 50/50.
What has Stanhope learned about life sciences real estate through Covid-19?
I think Covid highlighted just how important scientific research is and how it is here to stay. The sector is being driven by big global issues – the demographics, ageing population, maintaining individual health and productivity to counter declining country populations, and reducing the cost of care.
And then there is the growth in private healthcare, driven by economic wealth and discerning customers, and breakthroughs in personalised medicine which, in turn, is driving development of “derivatives.”
What we did notice during Covid was an increased demand for wet labs to accommodate an increased need for live experiments.
Do you think that by developing the right type of physical/built environment this can encourage better or more innovation?
Yes, the scientists like to be near to each other. You’ve got to create the whole ecosystem, a very overused word but start-ups and spinouts don’t want to physically move very far from their base. They enjoy the collegiate environment.These businesses require heavy support and maybe incubator space, which is expensive to provide. But if that is part of a larger development, then you would hope that those SMEs grow into larger scale tenants.In the US they talk about the “bump” factor. You need space to run events and mentoring programmes, to introduce VC houses and other useful partners. “It’s all about creating the right environment. If you do that, I’m sure that it will lead to breakthroughs and better and improved outcomes and productivity".Our asset management team is now very used to dealing with life sciences tenants. We really get to know the individual businesses. If you want to retain these organisations, you need to build an understanding from day one, because they tend to grow or fail very quickly. You need to get close to companies to understand where they are in the timeline of delivering their products or services and, particularly, the time frame for funding, which can result in rapid expansion. Accommodating this requirement for flexibility requires intensive asset management.Stanhope’s latest venture is outside London. Could you tell me a little more about Oxford North and how it might differ from existing science parks?
Oxford North is a 25.9-ha (64-acre) unique development site within the Oxford market because of its large scale and because it lies within the city boundary where, due to planning constraints, historic buildings and floodplain, land availability is very scarce and, as you would expect, science and technology demand is exceptionally high.
Together with Cadillac Fairview, we have a 50:50 JV with St John’s College and its
development company, Thomas White Oxford Ltd. From day one,it has been designed as a global innovation district for start-ups, SMEs and corporates with labs and offices, new homes, hotel, nursery, retail, F&B and three public parks. It will provide all the supporting services required for successful collaboration, and to enable life-enhancing discovery.
Our constant research of best practice, particularly in the US, and an extensive network of professional expertise will ensure that Oxford North delivers an exemplar addition to both Oxford and the UK’s science and innovation platform.
