Magdalen College has completed the acquisition of the 50% stake in The Oxford Science Park joint venture held by M&G Real Estate, to take 100% control of the management and future development of the Park. The consideration was £18.1m in cash.
The Oxford Science Park was established in 1991 as a 50/50 joint venture to deliver high-quality commercial offices and laboratories for science and technology-based companies. In the subsequent years, the joint venture has developed over 450,000 sq ft of net lettable space and the Park is now home to more than 2,400 people and over 60 businesses, ranging from start-ups based in the Magdalen Centre innovation hub to major international companies.
Magdalen College will continue to develop The Oxford Science Park as a long-term property investment, with ambitious plans to create an additional 300,000 sq ft of office and laboratory space on the remaining 12.8 acres of land during the next 10 years. This additional capacity will support the growth of businesses already based on the Park, providing flexibility with their space requirements, and enabling new companies to be part of the Park’s unique environment.
Rory Maw, Bursar of Magdalen College said: “The acquisition represents the start of an exciting new phase in The Oxford Science Park’s development. It is a clear statement of the College’s intent to support the growth of Oxford’s thriving community of science and technology businesses and, by taking 100% ownership, we will have the flexibility to explore new ways of working together. The Park is the natural location for new spin-outs from Oxford’s world-leading research facilities, as well as established businesses looking to grow. We thank M&G Real Estate for all their support and advice over the years.”
The acquisition has been financed by the private placement of £30 million loan notes with a long-term institutional investor, with an average term of 25 years at a fixed rate of 3.32%. The balance of the funds is intended to finance the property development programme at The Oxford Science Park.
Magdalen College was advised on the financing by JP Morgan.