Biopharmaceutical company MSD's prelet acquisition of 260,000 square feet of offices, research and laboratory space at the Belgrove House development in King’s Cross was the top London letting in CoStar's Impact Awards.
The £1 billion facility is the first time a major life sciences business has located its core R&D function in the centre of London with its office headquarters.
It will be ready for occupation in 2027 and will be one of MSD’s three global hubs, including over 70,000 square feet of laboratory space as well as Grade A office space plus amenities and ancillary facilities. Camden council backed the plans by Precis and GLA Land to develop the site for the company, known as Merck & Co in the US and Canada, in February 2021. Cushman & Wakefield advised MSD.
Stephen Morris, head of EMEA real estate at MSD, said the lease marks a "historic moment" for MSD in the UK. "We have reached this stage through expert advice from Cushman & Wakefield who not only identified a prime site for us but helped MSD navigate a complex prelet development transaction.”
About the project: The facility will be a world-class centre of research and discovery and will accommodate around 800 MSD employees. The Belgrove House development will meet high environmental sustainability standards and MSD will also be delivering an ambitious community outreach programme.
Due to be called The London Discovery Centre, the headquarters have been designed to bespoke specification by architecture firm AHMM, together with MSD’s internal architectural team with higher ceilings and the ability to flexibly repurpose office space within the building to create additional lab space if required.
The building is located close to the Francis Crick Institute, the UK flagship for discovery research in biomedicine founded by the Medical Research Council, Cancer Research UK, Wellcome, UCL (University College London), Imperial College London and King’s College London.
What the judges said: Cushman's head of UK and Ireland, George Roberts, said: "The London Knowledge and Life Science Quarter is much heralded, but this pre-letting marks a step change in a major investment by MSD in the quarter. The letting is globally significant and could act as an underwrite for others."
Derwent London's director Emily Prideaux described it as a "very complex deal requiring a bespoke scheme for a large pharma company and further contributing to London's life science sector."
Bayes' Alex Moss, the director of the research centre, said: "Integrating life science and technology is a key part in delivering sustainable growth to both the office sector and the UK economy. This transaction has both impact and innovation at its heart , and is an exemplar for others to follow."
They made it happen: James Meikle, international partner, offices, head of London occupier representation, Cushman & Wakefield; Stephen Morris, head of EMEA Real Estate at MSD.