Knight Frank - Melbourn Science Park Proposal

Melbourn Science Park

Science & Technology Park

Cambridgeshire

Introduction

On behalf of Knight Frank, we are pleased to provide our proposal for the joint agency advisory role at Melbourn Science Park. We see Cambridge as a strategically important city and the opening of our commercial office, earlier this year, shows our commitment there, to clients and their projects. The team have considered your questions very carefully and look forward to discussing them, they hope, in a discussion round table. The life sciences and innovation sector is one where Knight Frank are making considerable investment; in people, data and research, and in the occupier sector. Our relationship with Cresa in the States is proving to be an important part of this as the US occupier base expands overseas. I am local to Cambridge, and I am excited about the transformation of the city, the growing critical mass and the ability for different schemes to deliver a range of projects. I see the expansion of Melbourn offering an exciting opportunity to companies looking to find space, in a collaborative environment, with the benefit of Bruntwood’s strong identity.

Richard Claxton Knight Frank Head of UK Capital Markets

Q1 KNIGHT FRANK TEAM TRACK RECORD & GOLDEN TRIANGLE EXPERIENCE

Since 2018 the team have transacted the following in lab or lab enabled instructions.

Sq. Ft: 235,927

No. of transactions: 14

These are spread across the Cambridge, Oxford and London markets and include Landlord leasing disposals and Tenant Rep acquisitions.

Cambridge Biomedical Campus

Size: 800,000 - 4.2M Sq. Ft (Indicative expansion master plan)

Client: CBC Ltd/Cambridge Health Partners

KF Lead: Emma Goodford

Architects: Hawkins Brown/Allies and Morrison

Date: Ongoing consultation, master planning and economic modelling

Concept: World class centre for biomedical practice and research, integrated with neighbours and environment – ‘A Place for Life’.

Learnings and Considerations:

• The value of ecosystems/adjacencies/collaborations – UK/ Euro/Global positioning.

• Significance of infrastructure – transport, energy/power, strategic improvements.

• The need/demand for amenity/services/wellness - when to deliver them/viability.

• Occupier demand and delivery analysis, interpretation and forecasting take-up.

• Delivery models – multi-ownership structure and equalisation.

Howbery Park, Wallingford, Oxfordshire

Size: 200,000 Sq. Ft expanding to 450,000 Sq. Ft

Client: HR Wallingford

KF Lead: Iain Keys

Architects: Scott Brownrigg

Date: 2019

Concept: Establish a vision/story for an environment, water and climate change led project to identify JV partners.

Learnings and Considerations: Creation of a story/vision relating to purpose and occupier sectors to attract.

Connection with higher education and value of research expertise.

Importance of promoting unique attributes and differentiators, including research and testing facilities. Value of sustainability, community and amenity – futureproof for occupiers and key for talent attraction.

Ensuring the correct design and specification of building is provided for the research to be undertaken, whilst also allowing flexibility.

White City Place, White City innovation District

Size: 1M Sq. Ft

Client: Stanhope, Cadillac Fairview, Mitsui, AIMCo

KF Lead: Emma Goodford (Life Science lead)

Architects: AHMM (Allford Hall Monaghan Morris)

Date: 2015 / ongoing

Concept: Creation of a connected campus within one of London’s 5 Life Sciences clusters/ecosystems. 163,558 Sq. Ft let over 10 life science transactions to date.

Learnings and Considerations:

• The need for flexibility – original focus on media/tech. Responded to the market demand dynamic to deliver labs/science.

• The value of academic (ICL) and NHS Trust relationships/ connections and commercialisations.

• The operational and specification performance required in repurposed (Media Works and Gateway Central) and ground up lab development (Gateway East).

• The specific focus of lab occupiers – talent, adjacencies, collaborations and networks, plus operational/physical demands.

• The need for bespoke, focused marketing collateral for the Life Sciences sector.

• The value of pump priming amenity and service facilities - on the ground and via app/concierge services.

• The importance of collaboration with a joint agent.

The experience gained from advising on pipeline projects is of equal importance. On page 8 we have listed the instructions we are handling where we are giving advice in tandem with other architects/design and MEP consultants.

Occupiers represented in Cambridge

Project Consultants

The Knight Frank Team work extensively with Life Sciences consultants including;

Hoare Lea, AECOM, Buro Happold, ARUP, Hawkins Brown, Sheppard Robson, Perkins & Will, AHMM, Scott Brownrigg, Niazi Roden.

Client testimonial - Cambridge Biomedical Campus

This is an extensive piece of consultancy, delivered by Knight Frank with an understanding of vital concepts and delivered on time, with care and consideration.

Kristen-Ann Rutter – CEO Cambridge Health Partners

Our intent is to combine market knowledge, data, and track record led experience with the unique collaborative action that our international partnership adopts when connecting with occupiers. Our people will perform and, with creativity, we will help create incredible place at Melbourn.

People – Performance – Place

IDENTIFYING OCCUPIERS, SECURING LETTINGS & MARKETING STRATEGY

01 Who are the occupier groups to target?

1. Prelets – Larger more established occupiers, forward looking expansion, new UK entrants.

2. Office + Life Sciences occupiers – suited to Block B and Da Vinci.

3. Incubator/small scale up companies – for Block B, to create grow on /scaling pipeline demand.

02 Our Strategic Approach

1# Be prepared - create a package of marketing collateral, bespoke presentations, engage with the tech team, be ready to let.

2# Understand the specifics of the scheme - the vision for the project and promote the USPs.

3# Present the development team and consultants - promoting their track record in a confident, compelling way.

4# Understand the occupier - know their key business, building and deal drivers and research their decision making. We do this through research led occupier profiling documentation.

5# Understand the competition – be clear in their alternative choices and how we beat them!

03 Harnessing our Platform, Intelligence & Relationships

Market knowledge - We have developed extensive knowledge of Cambridge and the wider Golden Triangle and now have an office established in Cambridge.

Cresa is an occupier only advisor, with a network of 15 Life Science Practice offfices accross America. Our relationship with Cresa delivers connections to the US Markets. Our occupier relationships include, ABCAM, Altos Labs, Amgen, Alcamab, which we will leverage to create awareness and attract demand for Melbourn.

Collaborative thinking and networks - We will establish the ‘why come’ messages and plug into regional and national/international networks (Cambridge& and Cambridge Ahead, Med City/London and Partners, BIA) to promote the project to sector influencers.

The KF platform - the KF partnership culture means we communicate with colleagues at local, national and international levels. Our Introhive database identifies strong relationships across our residential and commercial networks. Knight Frank represent 28% of the Forbes UHNWI globally, many decision makers, investors and philanthropists. Our rural team have extensive coverage across East Anglia, which may provide connections with agritech sector prospects.

04 Marketing collateral

Material of the highest quality will be coordinated with the selected design consultant and we will lead and direct the procurement of this material.

Prelet Material will be:

Bespoke and specific to address particular requirements, identified through research and will be highly focussed.

Material will be high quality and largely digital for adaptability.  Experiential and informative.

Technically detailed and specific to occupier/bespoke demands.

Speculative Material will include:

Engaging and well messaged collateral including, brochures, premarket mailers, an engaging web presence, which monitors activity, a compelling on-site presence and locally immersive.

Material will be very specific to the scheme but will embrace the wider Cambridge offer.

All material will promote differentiators - the building design, operation and performance, the quality of the delivery team, the services provided, ESG attributes – community created, both on the park and through interaction with the local community - material must answer ‘why come?’.

We have developed some exciting and diverse brands, working with design consultants of the highest quality and will draw on our experience from these campaigns.

Data and Research - Jennifer Townsend is a dedicated Life Science sector research partner, supported by an analyst. We have created an extensive database of availability, deals done, pipeline. Our work will identify key sectors and specific targets. Prospects identified at this stage include:

In February 2023 the company raised £45m

• Sector: Biopharma, DNA Analysis

• In April 2023 the company raised £23m

• Sector: Biopharma, oncology therapeutics

In December 2022 the company raised £27.85m

• Sector: Biopharma, molecule drug discovery, oncology

• In October 2022 the company raised £10.04m

• Sector: Biopharma, genetic research

Establishing a new science cluster, working collaboratively with ICL.

Creating and maintaining an enduring brand focused on amenity, service and experience. Repositioning the relationship between landlord and ‘guest’ company.

Creating a new quarter in London and a destination untested for the office sector. Globally positioning this brand in the marketplace.

IDENTIFYING TO UNDERSTANDING

An analysis of active named occupier demand Our regional activity

01 Cambridge Science Park:

• 163 Site purchase

We can identify 600,000 Sq. Ft of office demand in greater Cambridge and 1.2 M Sq. Ft of laboratory demand.

This bar chart indicates the focus on active enquires between 20,000 – 50,000 Sq. Ft, accounting for 58% of the whole. Irrespective of occupier requirements, greater flexibillity is demanded and an ability to split larger demised areas must be shown (1:2:4 subdivision).

Occupier profile and specification requirements

• 210 - 240 Capital Markets sale, master-planning and leasing

• 22 – 30,000 Sq. Ft letting Dassault systems

• 194-196 Capital markets purchase

02 Cambridge Business park:

• Annual valuation

03 Kett House:

• 45,000 Sq. Ft leasing to Apple and Graphcore

• Recent deals with Siemens and Robert Bosch after Apple exercised break

04 Radio House:

• 30,000 Sq. Ft leasing to Agile Analog, MicroFocus and Sentec and building sale

05 Capital Park:

• Dow Chemicals surrender

06 Granta Park:

• Gilead 93,000 Sq. Ft pre-let

07 Cambourne: Capital markets sale

08 Tenant rep acquisition:

• 40,000 Sq. Ft (2025 ongoing)

Cambridge named demand

by sub-sector

This breakdown identifies greatest demand from biopharma and tech sector occupiers, which informs specification and amenity/ service demands.

We have investigated the network and corporate collaborations with TTP and can identify a sub sector focus on cell and gene therapy, neurotechnology, in vitro diagnostics, synthetic biology, drug delivery, robotics, optics, engineering. Telecoms – 5G coms, satellite coms, IOT. Corporate associations –Inmarsat, Rentokil, Pitney Bowes, Formula 1, Veripos. The association of these businesses with TTP enabled focus on potential targets.

The analysis of active demand demonstrates core demand for wet lab accommodation, with the greatest concentration of size required between 20,000-50,000 Sq. Ft. Larger requirements will be longer term and hence pre-let targets. Smaller requirements sub 30,000 Sq. Ft will demand immediately available space, with varying demands for fitted accommodation.

Lease terms

• Wet lab / CL2 accommodation.

• Multi let environment – choice and range, size and service.

• The need to accommodate scaling companies.

• The value of ecosystem collaborations, indicating a need for conference facility/ multipurpose spaces/network.

• Demand for service and amenity from scaling businesses – F&B, coffee, concierge, wellness.

• Quality offices suited to TMT, which might include some technical lab space.

• Biopharma = commercial R & D clinical trials GMP – accommodating evolution.

Large lab occupiers - shell and core + Cat A contribution  (pre-let Block E) Lease term Licence/flexible - 6 months+ Flexible leases from 2 years+ 5 year lease, 3 year break 10 year lease, no break 5 and 10 year leases ERVs £55.00 psf £45.00 psf £40.00 psf £38.50 psf £32.50 psf Concessions/rent free 4 weeks/12 months 3 months 6 months 12 months 6/12 months

Offices/Tech (Da Vinci)

KNIGHT FRANK LIFE SCIENCES AND INNOVATION 4 MELBOURN SCIENCE PARK | MAY 2023 01 02 03 05 06 07 08 04 Q2 FROM

Q2 OUR TEAM & VALUES

OUR VALUES

D&I Value alignment & initiatives

We have a variety of passionate employee network groups across our business:

from ESG Ambassadors to Environmental, Volunteering, Health & Wellbeing, Gender Balance, LGBT+ and Race & Faith champion groups.

We would like to brainstorm initiatives to integrate with Melbourn, which might include:

A Future Industry Leaders event, engaging next gen on subjects to be agreed (Kadans event schedules at Canary Wharf)

Volunteering – identifying a local project which the Knight Frank team can support on their two annual volunteering days

Lunch and learn initiatives – we will engage a diverse group of people to brainstorm a broad range of subjects that will be of interest and engaging to the potential audience for Melbourn

INTERGRATING WITH THE KNIGHT FRANK LIFE SCIENCES PLATFORM

The Melbourn team will be fully integrated with the Knight Frank Life Sciences platform and we will commit a diverse range of thought, consideration and action to the project. Emma Goodford, Iain Keys and Tom Slater will act as the key project day to day contacts.

UK MELBOURN TEAM

Emma

Partner Head Life Sciences and Innovation

Experience: 37 years, 4.8M Sq. Ft leasing track record, tenant representation clients including Gilead, Astellas, Bayer.

Partner Office head Cambridge

Experience: 29 years in investment, fund/ asset management and development consultancy, of which the last 5 years specialising in life sciences.

Tenant Representation

Experience 5 years tenant representation experience across the SE market and flexible office/service track record. 2020+ specific focus on the occupier sector in Cambridge.

Experience: Lead leasing on Kett House, Building 22 CSP, Radio House and Capital Park (Dow disposal).

Experience Life science research lead since 2019, author of KF Life Sciences Research papers and quarterly Insight Report. Lead analyst in respect of market activity.

Role: Executive lead/strategy, scheme design, market positioning and preletting. Key liaison with KF global life science platform.

Time Committed:

• First 3 months 1 day/week  3-6 months 2 days/month

• 6 months+ - 1 day/month

INTERNATIONAL PLATFORM

Role: Local/regional figure head, network and collaboration, marketing and leasing.

Role Leveraging occupier relationships and understanding dynamics of occupier decision making.

Role: Marketing and leasing with a focus on Block B and Da Vinci.

Role Occupier prospecting, analysis and occupier profiling (for prelet interrogation).

Time Committed: First 3 months 1 day/week  3-6 months 2 days/month 6 months + - 1 day/week

Time Committed:

• Duration: 1 day/month

Time Committed:

Duration: 1 day/week

Time Committed:

First 3 months 2 days/month to build a book of targets

• 3 months+ day/month

EUROPE AUSTRALIA

ASIA

Goodford

Edward Hoyle Associate

Iain Keys

Tom Slater Senior Surveyor Leasing

Jennifer Townsend Partner Life Sciences Research

Matt Elmquist San Francisco

Siem-Jan Vos Netherlands

Simon Terry Lloyd San Diego

Priscilla Charrey Paris

John Coakley Boston

Neil Hadi Switzerland Jonathan Rideout Shanghai Lawson Katiza Brisbane

MASTERPLAN AND PHASE 1 - SWOT ANALYSIS

Strengths

• Sheppard Robson Design - Acknowledged expertise and cutting edge design credibility.

• Bruntwood - Expert delivery, operational experience, value of network, brand, business community engagement with occupiers.

• Adjacency to TTP - The value of their presence to the cluster/ecosystem and potential to leverage relationships.

• Location - Removed from the congestion in the city/ core markets - on/off the park quick and efficient.

• Focussed on ESG credentials - Attractive to talent and aligned with corporate agenda acts as a differentiator.

• Place - Promote a high quality working environment (not just a cost effective option), integrated with the with local community with transparent boundariescreates  social, ethical and inclusive value.

• Operation - Experience delivery/operational performance - key for small and mid size occupiers.

• Flexiblity - Range, choice and collaboration potential.

• Service and amenity - Considers what the occupiers want but they must be operated in a customer centric way - key for talent attraction.

• Power - Installation of a ground source pump, PV and application for three new feeds from Royston Sub will secure new power feed.

Weaknesses

• Scale - Can MSP demonstrate critical mass?

• Profile - It needs to raise its profile for science- not just the TTP campus/connection.

• Block B - Must include meeting, conference/ meeting space for collaboration/network/ education events. Is the terrace an advantage or will ground floor public realm be more popular? If retained can it be shared/dressed?

• Da Vinci - Entrance over water? Practical implications/desire lines. Could balconies be enclosed - winter gardens?

• Transport and connection - Perception of remoteness/disconnection from the wider Cambridge market. How will the parking be phased to provide adequate spaces in line with delivery?

• Public spaces - Are these sufficiently connected to the building blocks? Adjacency/curation focus.

• Servicing - Be clear on operational experience and ‘how it will work’.

Opportunities

• Brand - Position MSP in the heart of the southern cluster and leverage success of other tenants/ occupiers - TTP, AZ etc.

• Promote credentials - Environmental and social value.

• Leverage relationships and connections - With the wider TTP business.

• To create a new centre for research - Extend the envelope of Cambridge by providing a highquality campus.

• Provision of a range of space - So a start-up can see a growth progression in one location.

• Foxton and Fowlmere developments - Combine with MSP to create a new corridor of growth.

• Actual delivery of space - By a recognised and experienced delivery party.

• Academia - Create formal relationship with Cambridge University or research foundation.

Threats

• Development pipeline - Potential for 14m Sq. Ft of labs across greater Cambridge in next 4-8 years. We have data on all pipeline.

• Foxton and other smaller developmentsAlong the A10 corridor secure occupier demand.

• Phased project - Need to protect existing/early stage occupiers from future disruption.

• Talent opinion - Is it too remote? Will city centre labs be more attractive? Transport strategy must be compelling.

ADDING VALUE

Partner led instruction - people who will remain centrally involved and committed to the client and project throughout its development.

We understand dynamics beyond Cambridge and the Arc and have an ability to connect to influencers and C-suite decision makers.

KF strength of London based agents linking with key regional centres eg Manchester, Edinburgh and Birmingham.

ESG team to implement measures on the park and work with occupiers to help them understand the value of the sustainable property for their corporate ESG agenda.

Active data and research led approach to uncover occupiers and opportunities, far greater than relying on passive market presence.

Knowledge of Bruntwood, existing working relationship and alignment of values, behaviour and ethos.

Local knowledge through the Cambridge office and Iain Keys profile in the market.

Experience of master planning, lessons learned, skills developed.

Research – a dedicated team with three years experience of sector analysis and experience in authoring detailed occupier profiles to inform on occupier businesses.

Connections to venture capital and the wider consulting sector, supporting the growth of Life Sciences Occupiers.

Unconflicted with other science park instructions but mutuality of purpose given complimentary work in other Cambridge sub markets.

A strong occupier consulting team, connected to international occupiers. This team have bespoke analytical tools that support occupier decision making and can inform how MSP will perform.

Q5 INSTRUCTIONS & CONFLICT PROTOCOL

CAMBRIDGE SCIENCE PARK

Client: Brockton Everlast

Size: 500,000 Sq. Ft

Status: pre-planning (June 2023) occupier identification strategy

Timing: 2026 onwards

Cambridge

RADIO HOUSE

Client: Orchard Street

Size: 14,450 remaining (total 40,000 Sq. Ft)

Status: Investment sale underway

KETT HOUSE

Client: Aviva Investors (Essex)

Size: 42,000 Sq. Ft leased to Apple/ Graphcore

Status: Block date Q4 24 Re-dev potential

Timing: 2026 onwards

Oxford

2600 OXFORD BUSINESS PARK

Client: RLAM

Size: 360,000 Sq. Ft

Status: pre-planning (Q4 2023)

Timing: 2026 onwards

London

WHITE CITY PLACE

Client: Stanhope/Cadillac Fairview/ AimCo/Mitsui

Size: 800,000 Sq. Ft

Status: Built/re-purpose, dev pipelinemarketing and leasing on going

Timing: 2023 active

BICESTER ARC

Client: Sladen Estates

Size: 545,000 Sq. Ft

Status: pre reserved matters-planning

Timing: 2026 onwards

Historically in Oxford we have acquired Oxford Business Park for Brookfield as part of the Atom Portfolio purchase and we advised MEPC at Milton Park 2013-18 (including the Vision 2040 period).

105 JUDD STREET

Client: Ashby Capital/ Native Land

Size: 63,000 Sq. Ft

Status: Planning achieved, marketing and identification strategy

Timing: 2025 onwards

Iain Keys and Tom Slater at Melbourn Science Park May 2023