Harwell Science & Innovation Campus

CLIENT

• Brookfield Asset Management

CLIENT INDUSTRY

• Real Estate Investment

SERVICES PROVIDED

• Buy-side advisory

LOCATION

• Oxford, UK

SIZE/VALUE

• £210 million initial consideration (£1.0bn GDV)

DIVISIONS INVOLVED

• Corporate Finance
• Global Capital Markets
• Commercial Agency
• Building & Project Consultancy
• Development
• Investment
• Planning
• Research
• Property Management

CHALLENGE
The client sought to enter the UK Life Science sector at scale. Just before Christmas 2019, an opportunity was identified to enter into a 50:50 JV with the government for the Harwell Science and Innovation Campus the (“Campus”).  With a stage one bid deadline in early January and completion set for 31 March, Savills had to rapidly mobilise in order to understand and comprehensively analyse the complex transaction. The business plan proposed growing the Campus from c.400,000 sqft to 1,800,000+ sq ft over 5-7 years: transformational for Oxford and for the sector. In order to do so, land exposed to nuclear waste needed to be decontaminated and then drawn down from government bodies, whilst simultaneously achieving planning permissions and subsequently undertaking a significant place making and construction programme. As significant value was attributed to optioned land, forensic underwriting and a clear understanding of all potential risks was required.

SOLUTION
Savills provided a fully integrated multidisciplinary advisory team including commercial agency, development, investment, planning, property due diligence, research and property management, in order to comprehensively underwrite, model and conduct sensitivity analysis at pace, clearly articulating all potential risks and upsides to Brookfield.

RESULTS
Savills advised Brookfield from inception through to financial close, successfully meeting the ambitious timelines and securing a landmark transaction, which is anticipated to deliver highly attractive returns.

Savills advised on a wide range of areas including: detailed investment thesis providing regional, UK wide and global perspectives; interloper analysis; financial modelling; structuring; commercial negotiations including drafting of the bid letters, IC materials and input into the HoTs, the SPA and the FDD including the EV to equity bridge assumptions and completion accounts process. This was in conjunction with detailed commercial, technical and planning work streams to provide a comprehensive and strategic advisory service.

TESTIMONIAL
“Savills provided us with buy-side advisory services on our acquisition of Harwell Science Park in Oxford, a world leading scientific research and development campus that is closely linked to the University of Oxford. The investment marked our first entry into the UK’s celebrated Life Sciences sector. We found Savills to be of the highest professional standards, having a deep knowledge of the sector and delivering us a forensic and skilled service. They are proactive in managing challenges, well organised and excellent communicators. We would recommend using them for all Life Science work going forward”.