COMMENT At a glance, central London doesn’t have a lot in common with the biotech clustering of Boston and the Oxbridge science parks. But 5m sq ft earmarked for the life sciences industry is under development in the city, as real estate wakes up to a valuable pipeline of opportunity on our doorstep.
The life sciences sector in the UK is booming and UK biotech attracts higher levels of venture capital and IPO funding than its European counterparts. However, it remains dwarfed by the US in comparison and is competing on a daunting global scale. Even the so-called Golden Triangle of Oxford, Cambridge and London struggles to compete with the existing clusters of expertise and knowledge in Boston and other US cities.
While Oxford and Cambridge have a combined 8m sq ft of dedicated life sciences space, Boston currently has thirty times as much commercial lab space as London. Square footage alone is no determiner of success but the value of science parks in Oxford and Cambridge goes beyond just laboratory space and access to patients and trials – they create an ecosystem of talent and knowledge which supports innovation and attracts further funding in a virtuous circle.
London can form a larger cluster than Oxbridge and become a global leader in life sciences given its rich talent pool, its universities’ research excellence, its position as a leading financial centre and its unique cultural appeal.
Making vision a reality
Imperial College London, King’s College London and University College London attract 13,000 students to post-graduate research yearly and Imperial is regularly recognised as one of the finest universities in the world, with a specialism in natural sciences. NHS hospitals have already established partnerships with these universities, allowing students the opportunity to study in first-class facilities and access to research environments.
This makes London an attractive location for life sciences enterprises, particularly the flood of new businesses commercialising research in data science and artificial intelligence. Oxford and Cambridge lead medical science and pharmaceutical research but there is an opportunity for data-driven companies – which often require less lab space and are typical of the many spinouts from London’s universities in recent years.
It is up to the real estate sector to make this vision a reality. Life sciences and biotech are undergoing a period of volatility in funding, meaning some landlords view them as higher risk but these problems can be solved by finding collaborative solutions like flexible leases, or through participating in the growth of a business in lieu of standard rent.
Real estate investors are seeking alternative areas like never before to diversify investment, echoing the recent embrace of the life sciences sector by pension funds. The data-driven life sciences firms London is becoming known for offer an excellent route into the sector, without the need to create energy-intensive laboratory spaces and complex solutions in handling biohazardous waste.
Reimagining Harley Street
London must do more to cater to life sciences. This may involve consulting developers and architects to adapt assets that have been poorly designed, to create versatile spaces which fit the needs of the user: wet labs, adapted space for tech and premium space for service providers such as venture capital.
Yes, it is a challenge but the private sector – real estate included – should be proud to play its part in supporting UK life sciences. The well-documented NHS priority to address the patient backlog means clinical trials may be marginalised in favour of the day-to-day need of treating people. Therefore, it is more important that life science provision in the private sector flourishes to make sure critical research and capacity is there to support investment for decades to come.
This is why Howard de Walden is looking at the impact of the development of 5m sq ft in the city by 2030, with Royal London Hospital Whitechapel and Canary Wharf adding 750,000 sq ft each.
We are reimagining the impact on Marylebone’s world-renowned Harley Street Medical Area: known for its independent healthcare cluster and host to a range of key support services for life sciences, with a variety of therapeutics, digital health and venture capital firms in the area.
Examples are the Sarah Cannon Research Institute, a world-leading clinical trials facility for cancer patients, and Re:Cognition Health, an award-winning cognitive health provider. Re:Cognition is at the forefront of the global clinical trials for the medication Lecanemab, hailed by Alzheimer’s international experts as an “historic moment” in the effective treatment of the disease, demonstrably reducing cognitive decline.
Howard de Walden is positioning Marylebone as a great place for healthcare and for life science activity: an innovation cluster in miniature at the heart of the UK capital.
Mark Kildea is chief executive of the Howard de Walden Estate
Photo © Howard de Walden Estate
