C&W Life Sciences Golden Triangle Lab Report Q4 -2022

SUPPLY & PIPELINE

INVESTMENT INTO LIFE SCIENCES COMPANIES

The first half of 2022 provided in excess of 65% of total activity for the year.

Supply in all of the core Golden Triangle markets remained constrained in 2022, restricting take-up levels in the sector. This is slowly being corrected as established life sciences landlords and new entrants to the market seek to capitalise on the unfulfilled occupational demand in the sector. Within the core Golden Triangle locations, supply increased by 350,000 sq ft in 2022 and a further two million sq ft of new supply is expected to start on site in 2023/24. However, it won’t be until 2025/26, when approximately four million sq ft of supply is set to be delivered and the greatest proportion of occupational demand will be met.

Venture Capital investments shrunk in 2022, due to a weaker public markets, with Biotech company valuations rebalancing to sustainable levels. Despite the fact that investment in life sciences companies decreased in 2022, by 42% compared to 2021, it’s crucial to keep in mind that 2021 was an extraordinarily busy year and that 2022 investment is still 22% higher than in previous years. There are strong underlying trends and fundamentals that make the market continue to be attractive to investors, such as increased healthcare spending, an aging population and government investment into innovation, science and research.

GOLDEN TRIANGLE LAB SUPPLY BY MARKET Asset Location Q1-22 Q2-22 Q3-22

COMPANY INVESTMENT ACTIVITY Investment Type Q1-22

Total Change

Q4-22

YOY

Q2-22 Q3-22 Q4-22 Total

YOY

Cambridge 5,080,000 5,080,000 5,080,000 5,080,000 -

VC

£2.56bn

0% 21% 13%

£654m £778m £550m £575m £3m £0m £6m £0m £2.14bn £702m £1.16bn £314m

-42% -99% -45%

Oxford London

303,000

IPO

£9m

1,425,000 1,544,000 1,609,000 1,728,000 387,000 421,000 438,000 438,000

51,000

M&A

£4.32bn

PRIME LAB PIPELINE BY PLANNING STATUS (EXCLUDING HYBRID SPACE)

VENTURE CAPITAL INVESTMENT INTO UK LIFE SCIENCE COMPANIES

£5,000 m

1,800,000 sq ft

1,600,000 sq ft

£4,500 m

1,400,000 sq ft

£4,000 m

1,200,000 sq ft

£3,500 m

1,000,000 sq ft

£3,000 m

Pre-Planning In-Planning

Golden Triangle Other Other Cambridge

800,000 sq ft

£2,500 m

Outline Planning Detailed Planning Under Construction

600,000 sq ft

SIZE

Oxford London

£2,000 m

400,000 sq ft

VC RAISED £1,500 m

200,000 sq ft

0 sq ft

£1,000 m

£500 m

Oxford

Oxford

Oxford

London

London

London

£0 m

Cambridge

Cambridge

Cambridge

2018

2019

2020

2021

2022

2023

2024

2025

DELIVERY YEAR

YEAR

Source: Cushman & Wakefield

Source: Cushman & Wakefield

04 / Cushman & Wakefield / Life Sciences Golden Triangle Lab Report