Mark Glatman's Abstract Securities has gained consent and will speculatively develop the first 140,000-square-foot phase of a major development in Cambridge aimed at pioneering more affordable high-quality life sciences and laboratory space, mirroring a model the company has employed in the office sector.
Associated company Abstract (Mid Tech) has secured detailed planning consent for the first phase of South Cambridge Science Centre to be ready for occupation in early 2025.
It will be developed on a brownfield site in Sawston, six miles south of Cambridge city centre and close to Babraham Research Park, Granta Park and Unity Campus and an established cluster of South Cambridge life science, biotechnology, pharmaceutical and research occupiers.
Abstract has been one of the busiest regional office developers in recent years at schemes in Glasgow, Aberdeen, Basingstoke and Croydon among others, with a reputation for picking up early-stage development opportunities in markets just set for rapid improvement and for that reason being able to offer Grade A space at cheaper rents than elsewhere in the market.
Glatman, chief executive of Abstract, told CoStar News, said the company had seen a "fantastic opportunity to acquire and reposition around five acres of land, to create much needed new science and technology lab space at a sensible and affordable rental".
Glatman added: "The scheme is in an established location in the Cambridge market where the availability of quality laboratories is almost zero against unprecedented demand for this type of space. Tight land supply and a very difficult planning regime means that there are huge barriers to providing the type of accommodation that is in so much demand. We are delighted to have the ability to get on and deliver and will be breaking ground soon."
He said Abstract has created a model able to deliver high-quality laboratory accommodation for a wide range of different user types with the building designed to offer maximum flexibility in a landscaped setting. The building will eventually sit alongside the proposed Cambridge South East Transport route, linking the neighbouring science and research parks, biomedical campus and Cambridge City Centre.
He says potential end users in the market are faced with rents in the high £60s per square foot, but Abstract is deliberately positioning the project to offer the best quality flexible laboratory space, aiming for rents under £50 per square foot.
"We feel that companies that are focused on growth will be looking for more affordable accommodation and we have been able to assemble a scheme to achieve this pricing point.’’
Abstract is working up plans for a second phase of development on the site for a further building of 40,000 square feet and planning will be submitted in coming weeks.
Christopher McPherson, development director of Abstract Securities, added: “As with all Abstract schemes, we are focused on providing buildings of the highest quality, with great environmental credentials, but we also aspire to ensure that this scheme is operationally net zero carbon. We believe that there is no other building in the Cambridge market that has a better carbon footprint than SCSC. A great deal of thought has gone into designing space that will meet the exacting requirements of several different occupier types whether biology or chemistry biased, and we have a high degree of flexibility in how we can accommodate different users. Given the supply demand imbalance and the more affordable pricing of our scheme, it won’t be a surprise that we are already at the early stage of discussions with a number of parties.’’
Matt Smith of retained agent DTRE said: ‘’With the named tenant demand for laboratory space in the highly competitive Cambridge market currently totalling in excess of 1.2 million square feet and vastly outpacing supply, it has left existing and potential new occupiers with limited options for purpose-built laboratory space.
“The decision by Abstract to deliver the scheme speculatively is an exciting development in the Cambridge market and will allow occupiers to have access to the same highly specified but more competitively priced CL2 laboratory space without having to face the costs of other schemes, where rents are now trending towards £70 per square feet.
“In addition, the South Cambridge Science Centre has been designed with sustainability at the forefront, including the use of renewable energy sources and will be delivered as a Net Carbon Zero scheme which is becoming an increasingly important consideration for occupiers.’’
It is understood that Peterhouse, the University of Cambridge college, retains the freehold ownership of the land and has granted a 175-year ground lease which will attract a ground rent after buildings are completed and let.
Abstract said it is in early discussions about forward-funding its project.
It has retained Michael Laird Architects to design proposals for the site. Bowmer & Kirkland has been appointed to build out the scheme with a start on site in early June.
Bidwells represented Peterhouse. Abstract were advised by DTRE. Bidwells, DTRE and JLL are retained letting agents for the South Cambridge Science Centre.
Established in April 2000 by Glatman, the Abstract Group of Companies specialises in commercial property development and venture capital financing. The management team at Abstract has worked directly with major property owners and corporate end users, and has developed in excess of 1.4 million square feet of new office buildings across the UK in the last seven years, providing new offices for companies including Babcock, KPMG, Aker Solutions, Virgin Atlantic, Pension Protection Fund, Zurich UK and Wood.