The sleepy, rural idyll of south Oxfordshire would not normally be associated with housing the central core of a billion-pound growth industry, but then outside the space industry, not many people realise that Harwell is home to the UK’s International Space Innovation Centre and that it is a national space research hub.
Just 20 minutes from Oxford’s city centre lies the 710-acre Harwell Campus (pictured right), a world-leading technology hub where plans are quietly being worked up for many millions of square feet of commercial and research space, plus thousands of homes.
The site had operated under the radar for decades, especially as a large part of it was formerly the main research base for the UK’s Atomic Energy Authority. But the nuclear research facilities have long been decommissioned since its role changed to a science and business park.
Harwell now hosts more than £1bn of in-situ scientific equipment, and 200 organisations are based there, involved in a myriad of mind-boggling activities. For example, the silver ring building – known as the Diamond Light Source – works like a giant microscope and produces light 10bn times brighter than the sun, which is helping with ground-breaking hi-tech, commercial and medical research.
Magali Vaissiere, head of the European Space Agency’s ECSAT, which opened a 60,000 sq ft R&D centre at Harwell this summer, says: “Harwell is a place which matters globally, where the impact of what has been discovered could matter for the rest of the world.”
In 18 months, Harwell has seen its space cluster grow from 40 to more than 60 organisations, and the joint venture that runs it has big plans for the former RAF airfield site to fuel rocketing demand from the hi-tech sector.
Run by a public/private partnership (see box), Harwell specialises in five core sectors: space and satellite applications; life sciences and healthcare; big data and super-computing; energy and environment; and advanced engineering and materials. The campus has seen 150,000 sq ft of buildings open this summer, which were fully occupied. Further prelets to a number of parties are under offer. Although no details could be confirmed, the jv will be building a further 80,000 sq ft of prelet and speculative space this year, with more to come in 2016.
Property development and investment firm Prorsus, which specialises in the UK knowledge economy, teamed up with Development Securities and replaced Goodman as the private sector development partner early last year, as part of the public/private sector jv (see timeline).
Angus Horner, the deeply knowledgeable, fast-talking managing director at Prorsus, sprays a myriad of facts into the room about Harwell at a machine-gun pace. “We’re the same size as a small town. The vast majority of the underlying freehold is owned by the UK Atomic Energy Authority. A lot of the campus is now occupied and owned under long leaseholds of around 150-200 years-plus and we have rights to draw down land into that long leasehold and partnership structure to carry on building when we want to.”
It is an efficient arrangement, resulting in not requiring all of the cash to be put in up front.
Will Cooper, Horner’s slightly slower speaking and boffinish partner at Prorsus, says: “In terms of developable square footage, we’re focused on delivering 1.1m sq ft in the first phase of commercial development towards the front of the campus. In total, we could easily get 2m-4m sq ft of new, mixed-use commercial space on the site. Plus residential.”
The jv has recently submitted a planning application for a 500,000 sq ft development on 25 acres, which also forms part of the 1.1m sq ft first phase. Subject to consent, work could start on site in the third quarter of 2015.
Future development will also focus on the 300 acres of remaining developable land, with ambitious plans including expanding the science park by creating a new residential quarter of around 1,400 homes to the north of the site, a 250,000 sq ft space cluster and a 200,000 sq ft university quarter to the south of the site which could go in for planning late this year/early 2016. This latter quarter would be a phased development of four buildings of 50,000 sq ft each.
Christopher Reeve, estate management director at Reading University, says: “Leading scientists and innovators travel long distances to use Harwell’s world class kit. Converting this audience to cluster their businesses there is a great opportunity, and also involves marrying up more earthly matters such as recruitment and transport access.”
According to Prorsus, rents will be on a bespoke basis but are likely to hover around the mid £20s per sq ft. Horner confirms that a national and local agent are now being sought as advisers on the commercial space. “We want agents to come to us with opportunities and ideas. Not just a standard pitch.”
Meanwhile, the jv has planning consent for 120 homes as part of the residential quarter and building will start next year. The aim is to net the workers and provide homes for them on site. Cooper says: “We have a valuable land asset and we’re not auctioning it off to housebuilders for Brookside homes for hobbits.”
This includes a mix of intermediate housing – social housing with either shared ownership, intermediate for sale, or affordable rented which is 80% of open market rent – PRS development, and corporate lodges. Up to 50% of the non-social homes will be for PRS.
The cross-fertilisation of ideas between scientists and industry is likely to be a mainstay of the campus for years to come.
Global space sector
The UK punches above its weight in the global space business. According to the government’s Space Growth Action Plan – which outlines the UK’s space innovation and growth strategy between 2014 and 2030 – the government’s goal is to raise the UK’s share of the expected £400bn global space-enabled market to 10% by 2030, with an interim goal of growing the UK Space industry to £19bn turnover in the next five years. The government estimates this would lead to a UK sector with £40bn pa of space-enabled turnover and the creation of 100,000 jobs.
Harwell Campus ownership
Harwell’s growth is accelerated by a campus partnership – the Harwell Oxford Partners – 50% owned by property development and investment firm Prorsus and partners, with Development Securities and the UK government.
The 50:50 private/public sector joint venture sees Prorsus and DevSec providing the private sector investment and development expertise, in partnership with the two public sector partners – the Science & Technology Facilities Council and UK Atomic Energy Authority. Prorsus and DevSec replaced Goodman as the private sector partners in 2014.
Prorsus specialises in the UK knowledge economy and is run by three equity partners: Angus Horner, William Cooper and Gordon Duncan, who claim they work a six-day week. DevSec director Julian Barwick also sits on the partnership board.
Horner is a former agent and previously worked at Cluttons and Chelverton. He is also a property development specialist. Northern Ireland-born Cooper has held several financing and investment roles, latterly with Land Securities, where he was the group’s corporate finance director. Gordon Duncan is a chartered accountant, who has worked at PwC, Deutsche Bank and Kleinwort Benson.
