Life sciences in the south east: ecosystem clusters

It is no surprise, therefore, that this market is attracting substantial investment and development interest as well as accelerated occupier demand for life sciences real estate.

Whether you are a real estate investor/ developer or occupier, finding the right location is always paramount and the key to finding the right location is to have a detailed understanding of the ecosystem that defines and supports it. With this in mind we’ve taken a closer look at the top life sciences clusters in the south east.

Oxford

Oxford is well known for its two universities, Oxford and Oxford Brookes. The University of Oxford is the number one University in the world and holds a number three position globally specifically in life sciences. Unique national assets and institutions located in Oxford include the Wellcome Trust Centre for Human Genetics and the Diamond Light Source and STFC’s Central Laser Facility at Harwell Campus. Furthermore, Oxford University Hospitals NHS Foundation Trust is one of the largest NHS teaching trusts in the UK and ranked number two nationally on the basis of clinical trials, conducting 534 clinical research studies during 2018/2019.

Life Sciences occupiers include 4 Unicorns emanating from the university including Oxford Nanopore, Immunocore and Oxford Biomedica. These players sit alongside a growing number of SMEs, with spin-outs from the University of Oxford raising the most equity investment in 2020 when compared to all other UK universities.

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Cambridge

Anchored by the University of Cambridge, which is ranked number two globally in life sciences, and the Anglia Ruskin MedTech campus, the area is also home to leading research and teaching hospitals, notably Addenbrooke’s, as well as unique research facilities such as The Wellcome Sanger Institute.

There are almost 450 life sciences companies operating in the Cambridge area. Perhaps the most significant example is AstraZeneca, but other large players include Amgen and Illumina. There is also a thriving life sciences SME scene, in part driven by the Universities dynamic commercialisation arm that has produced over 135 spin-out companies since 2000.

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The best of the rest

Whilst acknowledging that there are multiple factors that make a great life sciences cluster, we have also assessed trackable indicators related to funding, critical mass and research intensity to highlight two locations outside of Oxford and Cambridge that have a strong life sciences ecosystem and therefore present opportunities to investors, developers and occupiers alike.

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What does a successful life sciences development look like?

It is well documented that a successful life sciences development requires the right “anchor or anchors” such as a leading knowledge and research institution but what else is required? Technical requirements will vary depending on the location and type of science being conducted, however an audit of existing life sciences developments across the South East market reveal some common attributes;

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Emma Goodford
Partner, Head of National Offices
emma.goodford@knightfrank.com

Jennifer Townsend
Associate, Commercial Research
jennifer.townsend@knightfrank.com