GSK has announced plans to open a 300,000-square-foot global research and development centre at Cambridge Biomedical Campus.
The centre will be home to British pharmaceuticals giant GSK’s research and development operations in the UK, representing a £400 million investment commitment by the company.
Prologis is the development partner for the centre, which will be located at Discovery Drive.
The centre is planned across three interconnected buildings – 2000, 3000 and 4000 Discovery Drive. Construction is under way on 2000 Discovery Drive, 3000 Discovery Drive has full planning permission and 4000 Discovery Drive recently received planning committee approval, subject to formal planning permission.
GSK said it will house more than 1,000 GSK scientists with the location providing them with direct access to a "world-class ecosystem of biomedical research, patient care and academia, enabling translational research by bridging laboratory science with clinical practice".
The site will feature "state-of-the-art, tech-enabled labs and infrastructure" to support research in the company's focus areas of oncology, respiratory, hepatology (liver), vaccines and HIV.
GSK said many of its partners and collaborations are on the park including the Cambridge Centre for Data-Driven Discovery; Cambridge-GSK Translational Immunology Collaboration; Cambridge-GSK Metabolic Science Collaboration; Cambridge Immune Ageing; GSK-Teichmann Lab; and GSK's Clinical Unit at Addenbrooke's Hospital.
As a result of the planned move to Cambridge, GSK said it will vacate its research and development site at Stevenage, Hertfordshire, with a phased move for employees by 2029. Alongside the move to Cambridge, GSK will also upgrade its existing R&D laboratories at Ware in Hertfordshire and move some employees there to create a fully integrated drug development and commercial manufacturing scale-up capability.
GSK will retain its global headquarters in London, which is unaffected by today's announcement.
Prologis said the commitment was a milestone for its delivery of the Phase 2 expansion of the campus. It said with 1000 Discovery Drive fully occupied, GSK’s commitment means that Phase 2 will be fully committed once the remaining buildings are delivered. The phase represents $635 million, or £500 million, of direct investment by Prologis.
Prologis said in a statement that the commitment also demonstrates the value of investing ahead of demand in specialist life-sciences infrastructure. It said that by bringing forward high-quality laboratory and research space, it is helping ensure that the infrastructure is available when globally significant organisations choose to establish or expand their operations in the UK.
Andrew Blevins, senior vice-president, life sciences, Prologis, said in a statement: “GSK’s decision is a powerful endorsement of Cambridge Biomedical Campus and the unique ecosystem that has been created here. Prologis invested ahead of demand at Discovery Drive because we believed global life-sciences organisations would continue to choose Cambridge. Having the right specialist infrastructure available allows companies to establish world-class facilities more quickly and strengthens the UK’s ability to compete for internationally significant life-sciences investment.”
Jonathan Reynolds, Secretary of State for Business, Innovation, Science and Trade, said: “The UK is a genuine world leader in the life sciences, an industry providing life-saving new treatments to patients, while creating and supporting jobs in postcodes across the country.
"This announcement from GSK is yet another vote of confidence in the sector and demonstrates the success of the Government’s Industrial Strategy in unlocking vital private investment into the UK, one year on from the launch of the Life Sciences Sector Plan.”
Paul Bristow, Mayor of Cambridgeshire and Peterborough, said: "Cambridge Biomedical Campus has become one of Europe's leading centres for life sciences because it brings together pioneering research, outstanding healthcare and ambitious businesses in one place. GSK's expanded presence is another vote of confidence in our region and demonstrates the continued appeal of Cambridgeshire as a place where global organisations choose to innovate and grow."
Patrick Scanlon, senior director, CoStar Analytics, said: "Lab space demand has been driven by large prelets over the last 12 months, with rolling four-quarter activity reaching more than 1.2 million already in Q3, its highest on record. The deal to GSK is the largest single prelet of lab space ever recorded in the UK, coming hot on the heels of the Ellison Institute's pre-purchase of its 450,000-square-foot site across several buildings in Oxford last year."
Prologis is working in partnership with Cambridgeshire County Council to deliver Phases 3 and 4, with the potential to create a further 2.4 million square feet of life-sciences space and representing an additional investment ambition of $4 billion (£3 billion) over the next two decades.
Prologis was picked to complete the next two phases of expansion across 67 acres owned by Cambridgeshire County Council in February. The designs include an innovation hub with coworking laboratories, learning spaces, a skills and training centre, keyworker serviced apartments and offices for life science support companies.
New amenities under consideration include a café, community rooms, event spaces and educational facilities. The council said the land may also host two new hotels, "providing leisure and conferencing facilities and offering affordable accommodation for staff, visitors" and NHS patients, subject to planning approval.
As part of the committee's decision, the Council has given Prologis an option to acquire its land interests on a long leasehold basis, subject to the developer securing planning consent required for the expansion.
The campus is already home to institutions including AstraZeneca’s global headquarters, Cambridge University Hospitals NHS Foundation Trust, the Wellcome Trust and Cancer Research UK.
Last week Segro's board said it was minded to recommend US listed giant Prologis's "best and final" £14 billion takeover bid for the UK REIT, opening the door to what will be one of the largest real estate transactions in the UK.
CBRE is understood to be advising GSK. Savills and Bidwells advised Prologis.