Thomas White Oxford, Stanhope and Ontario Teachers' Pension Plan have officially launched Oxford North, an £1.2 billion global innovation district with consent for 1 million square feet of flexible lab and office accommodation.
The development was officially opened on Tuesday by former Conservative party leader Lord Hague of Richmond, Chancellor of the University of Oxford. CoStar News visited the site to catch up with the developers at a launch to the agency community the following day.
The district is being developed by Oxford North Ventures, a joint venture between Thomas White Oxford, which is the development company of St John’s College at the University of Oxford, Ontario Teachers’ Pension Plan, the global investor, and development and asset manager Stanhope. Savills is advising on leasing and the development.
The project is targeting the entire science, technology and AI ecosystem, from start-ups and spin-outs through to global corporates, offering the full life cycle of space, from fitted labs and turnkey solutions to grow-on space and bespoke buildings, although the core tenant base at first is likely to be local spin outs from Oxford University. The joint venture says there has been strong demand from the AI, quantum computing, biotech and foodtech sectors.
It launches with the first phase ready to lease. The recently completed 158,500-square-foot Phase 1A comprises two purpose-built laboratory buildings offering units from 2,000 square feet up to 56,000 square feet, including 13,500 square feet that is being fitted out and will be available in December, as well as The Red Hall, totalling 33,000 square feet of workspace over four floors.
The scheme has been designed by Fletcher Priest Architects and includes public realm aimed at positioning the scheme as Oxford’s "only ‘seven-day-a week’ science and technology-led community".
The 25,000 square metres of amenity will include an 80-seat café, 100-seat townhall and coworking space, a central 2,000-square-metre square, as well as Fallaize Park, a two-acre public park featuring Your planetary assembly, the first permanent public work in the UK by Icelandic-Danish artist Olafur Eliasson.
The developers say sustainability-wise, the scheme aims to go beyond conventional practice to deliver a "net positive" development. It says since August 2021, more than 2,000 construction personnel have been working on the site, including over 50 apprentices, and the district is forecast to boost the economy by £150 million per year in gross value added.
Ultimately the development aims to be much bigger. There is detailed consent for three further laboratory buildings - 3 Fallaize Street, 1 and 2 Thomas White Street, providing 374,400 square feetof flexible labs and workspace suited to a range of company needs.
The outline consent is for 936,500 square feet of laboratories and offices as well as a hotel, while the Hill Group is busy building the first 317 of the 480 homes coming forward and already healthily presold as part of the 64-acre masterplan. The land is owned by St John's College.
The joint venture says connectivity and a city centre address will be key to the development's success. There is development much further from the city centre at Milton Park and Harwell, while the city centre's Clarendon Centre retail block and the former Debenhams are not as close to the M40.
Oxford North is a 15-minute cycle from the city centre, and is close to Oxford Parkway Station, which is strategically positioned on the East West Rail corridor.
The city is a world-renowned centre for research excellence and home to the highest concentration of science research facilities in Western Europe. Oxford North is therefore close to multiple world-class research and scientific institution. This includes the University of Oxford, which has produced the most unicorn founders in Europe and accounts for 30% (£5.7 billion) of all the capital raised by spin-outs, the highest share of any UK university.
The combination of the college's long-term land-holdings, research expertise and connections, with Stanhope's development expertise and Ontario's deep pockets and expertise in real estate investment are also seen as setting the project apart.
Speaking to CoStar News at the launch of the development, Kevin Darvishi, head of leasing, Stanhope, said the developer was bringing some of the learnings from its work on the White City innovation district in west London and the ongoing work to extend the British Library site in King's Cross.
"Vital is who you are close to. With White City and the British Library it is Imperial College and the Crick respectively, which are huge magnets for science and innovation. And clearly here it is Oxford University."
Darvishi added that it is clear that occupiers looking for such high-tech and specific space need to see the buildings completed to make decisions, and at the same time may have shorter time-horizons than other companies when moving. "It is important to provide flexibility but also to be able to show occupiers what the space and location actually looks like." Davishi said the response from occupiers attending the launch has been extremely positive.
"This is a bold development that would not look out of place in central London."
Victoria Collett, development director of Thomas White Oxford, said the development stood alongside and complemented the other major life sciences and innovation development coming forward in the city. "It's important to see Oxford as a peer network, and we should all promote it together rather than look to compete. The University is getting involved in that too to ensure we look outwards working with developers and businesses to enhance the city."
At the official opening Hague said the continued investment into "next generation infrastructure and inclusive opportunities such as Oxford North means this an exciting time to be part of this city".
Jenny Hammarlund, senior managing director, Real Estate, EMEA at Ontario Teacher’s Pension Plan, said: “Alongside our partners, we look forward to leveraging our deep track record supporting the full business ecosystem, from early-stage innovation hubs to scale-up opportunities, to ensure its success."
David Camp, CEO of Stanhope, said: “We are creating one of the UK’s most exciting, dynamic and vibrant mixed-use communities that enables businesses of all shapes and sizes to flourish side by side. With an improving funding outlook – VC investment into UK life science companies is expected to exceed £3.7 billion this year, the highest amount since 2021 – Oxford North is being delivered at the opportune time, and will address the unsatisfied demand for laboratory space in the UK from both domestic and international businesses.
“Crucially, it also benefits from the unique consortium behind its delivery, which combines long-term, stable capital, significant science and technology expertise, market-leading development management capabilities and deep local stakeholder knowledge and investment. This single ownership structure improves long-term investment and ensures that the quality of accommodation, public realm and amenities is maintained.”