The Crown Estate, Pioneer Group, and OSE partner for life sciences

Their first project is a life sciences lab in Oxford. To make this happen, The Crown Estate has purchased the former Debenhams site in the city center and plans to convert it into around 100,000 square feet of workspace.

The Crown Estate will invest an initial £125 mln (€147 mln) in the project, a sum that includes both the purchase price and projected capital investment in the building.

Construction is expected to start next year, subject to approval, and the new lab space should be ready by 2027/2028.

This new facility will provide much-needed high-quality lab space for Oxford's thriving science and technology sectors.

Dan Labbad, CEO at The Crown Estate, said: ‘Science, technology and innovation are vital growth sectors for the UK as the nation looks to cement its position at the forefront of innovation globally. To realise this goal, the sectors must be supported with mission-critical partnerships that bring together venture capital and expertise in asset management and property investment, matching the immense talent and ingenuity of the companies that are growing at pace.’

Ed Bussey, CEO at Oxford Science Enterprises, added: ‘The UK’s science and technology sector is full of promising businesses with the potential to solve some of the world’s toughest challenges, but they often struggle to access the right lab or start-up space – which can be a significant barrier to entry for companies as they scale. As a key player in Oxford’s innovation ecosystem, we’re proud to partner with The Crown Estate and Pioneer Group to support entrepreneurs and companies working at the forefront of the UK’s science superpower strategy.’

Richard O'Boyle, executive director at Pioneer Group, said: ‘This collaboration will create a central nexus for scientific innovation, supported by our accelerator and launch programs aimed at empowering science entrepreneurs. With the UK’s largest network of life science experts, cutting-edge labs, and robust support systems, we are poised to redefine industry standards and foster a vibrant scientific community.’

Ben Haller, director at DTZ Investors, commented: ‘We are delighted to complete this geared long-leasehold sale to The Crown Estate whilst retaining the freehold, including a ground floor retail parade at the base of the building.  It achieves a strategic objective for the fund to unlock direct exposure to rental growth and occupier demand in the UK’s life science sector. Ahead of the sale, DTZ Investors acted to help de-risk the development for the buyer with an array of technical due diligence reports alongside secured power upgrades to the building.’

OSE is an investment company in transformational businesses, Pioneer Group is a real estate owner and a one-stop shop for life science companies, while The Crown Estate is a landowner and one of the largest rural holdings in the UK.

The partnership between The Crown Estate and Pioneer Group also has the potential to expand beyond Oxford to other regions of the UK.

JLL acted for The Crown Estate, Hampson Wall acted for Pioneer Group and Savills acted for DTZ Investors.