Report to Executive Board (For Council)

Report to Executive Board (for Council) 14 June 2017 Estate Strategy Update Report

1. Introduction

Since 2012 our Estate Strategy has been updated with annual reports to Council. This document provides a further high level update on projects including those in construction, in design and under consideration, sets out the strategic direction for the estate, estate performance and identifies key issues. Since the update to Council in July 2016, our estate holdings, strategy and objectives remain much the same, previously identified projects have been progressed and some new strategic projects have been agreed. In September 2016 the Campus Masterplan was presented to Newcastle City Council Members to inform them of the University’s strategic direction, contribution to knowledge, world ranking and £1bn per annum in the local economy and the estate development necessary to achieve this. We also showed the positive progress achieved in improving the physical environment and environmental sustainability. The Masterplan Review for Science Central has been adopted as planning guidance and improves and clarifies many aspects. It has been adopted as planning guidance and each plot developer is separately applying for full planning permission. Development is actively proceeding, with denser development within plots balanced by outstanding plans for sustainable urban drainage within the landscaping. As part of the vision for urban sustainability, a District Energy Centre is proposed. Our UK estate includes:  The Newcastle Campus including the Medical School, much of our student residential accommodation, the Campus for Ageing and Vitality at the former Newcastle General Hospital site, the Centre for Life, Newcastle Business School and Science Central, outlying student residential accommodation, sports fields and outstations – Cockle Park and Nafferton Farms, Dove Marine, Tyne Offshore and Blyth Harbour  Newcastle University London  PHES Research Facility, Fareham, Hampshire In addition to the UK estate, we operate a campus in Malaysia, occupy floor space in the Singapore Institute of Technology at Ngee Ann and Nanyang Polytechnics in Singapore. W e have leased and fitted out additional space at the Singapore Devan Nair Employment & Employability Institute. Since July 2016 the operational estate area has increased from 216,031m2 NIA (net internal area) to 219,118m2 primarily down to the addition of new facilities. The floor area is estimated to increase further to 222,376m2 by July 2018 as new buildings, refurbishments and extensions become operational.

2. Strategic Objectives The estate strategic objectives are to facilitate academic priorities and:  improve the condition and functional suitability of our buildings  implement the Coherent Campus initiative  ensure effective utilisation of space  deliver ‘full life cycle’ value for money on all major projects

We also have the following principles:  Better before more, improve the condition and functional suitability of the Campus, whilst identifying surplus or under-performing buildings that can be released for complementary uses that will integrate the campus with the city.  We will seek to co-locate similar activities.  Where possible non-academic functions (predominantly PSS) will not be accommodated in academic buildings.  We must reduce the carbon footprint of our estate.  We are committed to inclusive design to ensure the Campus is accessible to, and usable by as many people as possible without the need for special adaptions or design.  We strive for quality teaching and research environments for excellent student experience. The Campus Masterplan by Sir Terry Farrell in 2002 has largely been implemented. It is being updated and extended to include the route to Park View student residences and the Library Precinct. Much positive progress has been achieved with external spaces, following the principle of improving public realm.

3. Progress against Strategic Objectives

3.1 Improve the Condition and Functional Suitability of Our Buildings Our strategy continues to improve the quality and functional suitability of our floor space through investing in maintenance, new build, refurbishment, rationalising the use of floor space and withdrawing from or finding alternative uses for space that is no longer fit for purpose. Since our first Strategy in 2007 increased investment, has delivered improvements in the amount of floor space in functional suitability grades 1 & 2 (67% in 2007; 91% in 2016) and the amount of floor space in condition categories A & B (78% in 2007; 88% in 2016). Estate condition has improved greatly due to sustained investment and has focused on urgent priorities such as refurbishment of building fabric and replacement of obsolete plant and infrastructure, however as buildings age the cost of long term maintenance backlog continues to grow. The latest condition survey estimates it at £38m with infrastructure and services as the main cost issues. Phased work in occupied buildings is very difficult and in order to completely refurbish an area without leaving a legacy of services issues, decant space is required. Some buildings are nearing the end of their lives with structural issues beginning to emerge e.g. King George VI Building and Windsor Terrace where further intrusive survey inspections to determine their life expectancy are underway. The building condition survey carried out in January 2017 identified problems with the structural steelwork in King George VI and a sum of £250k was allocated from long term maintenance to re-seal the external cracking to the brickwork. ESS are seeking advice from historic building experts regarding a long term solution to the problem, once their report and schedule of indicative costs for a permanent solution, if there is one, are received the long term maintenance plan will be updated accordingly. Improving the condition of the estate may be done as part of the long term maintenance program, be included within major refurbishment projects (as for Claremont Tower) or as a capital replacement project (as for the Stephenson Building). In addition to increasing the percentage of building condition A & B is the requirement to factor in the longevity of services infrastructure within properties undergoing large scale refurbishment or improvement. This is often an under-valued element of a refurbishment project as costs are often high and visual impact is limited. A recent survey of the Daysh/Claremont Complex has suggested this element of the refurbishment may be as high as £9.9m (works cost). Site wide infrastructure e.g. the high voltage installation is crucial to the continued operation of the University, significant investment over a period of 8 years is planned with the renewal of high (HV) voltage switchgear and transformers. The upgrade will also allow academic colleagues to obtain real-time data on the operation of the extensive HV network. The underground duct system, through which many services are routed is also being refurbished due to structural issues as well as corroded pipework systems. The table below shows the percentage of the estate in condition A & B as steady over the last four years, whilst there are many elements within buildings that are assessed as condition C, bringing them up to condition A & B will not have a large impact upon the overall condition of the estate. This combined with some elements in buildings completed within the last 15 years now at a point where they require continued investment in long term maintenance in order to keep those buildings at condition B, means that continued investment in long term maintenance is crucial in order to maintain the estate at the current level. For 2017-18 the long term maintenance budget is £3.0m. Within this ESS has allocated £0.5m to accessibility improvements while £0.5m is allocated to the capital high voltage network refurbishment and upgrade. Both are essential to ensure a safe, sustainable, accessible estate. A significant sum is spent on asbestos removal annually. Since 2000/01, Newcastle has reported a 14 percentage point improvement (from 74%) in the amount of non-residential space graded in good condition (condition A/B). In 2015/16 Newcastle maintained 88% of its non-residential space graded in good condition, and 13 peer estates reported improved rates of change. The long term maintenance budget for investment in aspects that affect this rating is £2.0m for 2017-18 and our target for buildings in condition A & B has been held at 88%. The budget both contributes towards maintenance aspects of refurbishment projects and benefits from major refurbishment programmes that address maintenance issues. The programme is carefully and continually assessed and adjusted and monitored by a Steering Group.

Target Measure 2013-14 2014-15 2015-16 2016-17 2017-18 Floor space in condition 88% 88% 88% 88%* 88% category A & B Floor space in functional 91% 91% 91% 90%* 90% suitability grade 1 & 2 *estimated For functional suitability, since 2000-01, Newcastle reported one of the best sector improvements (+57% points) in the amount of non-residential space graded functionally suitable (grades I and II) as per the table above. Newcastle continues to rank in the best quartile across UK estates with 91% of non-residential space graded in category 1 & 2 in 2015- 16 against an improved Russell Group median of 88% (up 2% points). We are estimating a slight reduction to 90% for 2016-17 and will probably maintain this for 2017-18. Feedback from the National Student Survey, Post Graduate Taught Experience Survey, Post Graduate research Experience Survey and the International Student Barometer, continues to place the estate and facilities in a positive light with satisfaction this year increasing to 92%. Feedback about the campus at Open Days continues to be excellent. Having an attractive campus environment within the city centre always attracts positive comparison with rival universities. The learning, teaching and student experience spend in summer 2016 was £1.5m and spend is estimated at £1m for summer 2017. This programme has been suspended for 2017-2018 pending improved university financial performance and therefore no works are planned for summer of 2018. Research and collaborative working between estates, IT colleagues, academics and students to create innovative learning and teaching space has generated significant improvements to the learning and teaching environment. As well as trialing more flexible furniture in various locations, with good feedback so far, the 100 seat Learning Lab in Herschel Building enables interactive problem-based group teaching. The Learning and Teaching Centre will provide a collaborative lecture theatre where students can sit in groups for interactive learning. 3.2 Implement the Coherent Campus Initiative Since 2009 we have invested £8.7m in improving the spaces between buildings, providing a high quality, accessible, pedestrian priority campus, including over £0.5m in improved cycling infrastructure. Our Green Flag accreditation was renewed. The principal investments in 2015-2016 and 2016-2017 were:  As part of the “Greening the campus” a review of our campus spaces was undertaken with the intent to replace where possible hard landscaped spaces with green/planting spaces. A prioritized plan was produced to reflect this wish. From this extensive work has been implemented to ‘green’ the campus providing approximately 5000 plants and 70 trees.  Also as part of the Greening the campus” initiative Ridley Terraces hard landscaping was replaced with new planting areas and the Cassie frontage onto Claremont road was re- modelled with fresh planting.  The completion of the King’s Road landscaping works adjacent to King George VI building introducing additional soft landscape areas to “green” up King’s Road.  The INTO development provided additional bin storage with a green roof to help manage the commercial premises bins in Assembly Lane  A new facility at Park Terrace to segregate and recycle waste  Timber screening and planting to the Curtis Auditorium undercroft, to start the improvement of the space adjacent to the INTO building entrance. In addition, Haymarket Lane fencing/screening has been erected. Some of the planned Lovers Lane improvement proposals have also been installed  As part of Art on Campus and for the Freedom City celebrations in 2017, a sculpture of Martin Luther King was commissioned from Nigel Boonham, a top UK figurative sculptor. This will be erected in October this year in the Armstrong Quad as a culmination of the Armstrong renovation celebrations  Drainage improvements to the soft landscaping area at Park Terrace and the Student Union lawn Following our flooding in 2012, we have incorporated sustainable urban drainage in all our landscape and facilities planning and design working in close collaboration with the academic water management team in the School of Civil Engineering and Geosciences. This has been recognized with a Green Gowns Highly Commended Award from the Environmental Association for Universities and Colleges and a Highly Commended Award from Educate North and Higher Education Leadership. We have also been shortlisted for a Times Higher Education Supplement Outstanding Estate Strategy Award. Current and Future Landscaping Projects include:  The Forum landscaping is being extended around the Boiler House Event Space for completion in September 2017  Completion of the phased landscaping of King’s Road joining up the Forum landscaping and St Thomas Street road entrance phase adjacent to King George VI building  Carry on from the initial Lovers Lane improvement schemes, and in particular improve the pedestrian route from the Park View student residences & Sports Centre extension developments locations past the Dental school and onto the main campus  Continue to develop plans to re-develop/landscape the “Herschel Quad” space  Continue to identify spaces to increase the bike parking provision with covered/secure spaces alongside the uncovered bike hoop type spaces along with necessary signage amendments & improvements as the campus is developed.  Newcastle City Council has advised it will commence highways work to Percy Street, Barras Bridge and Haymarket in 2017. The University had offered to contribute significant funding to uplift the quality of public realm, pedestrian safety and connectivity to the city centre. While it is good news if it proceeds, we understand the work is to be carried out in temporary surfaces and as there can be no certainty as to whether and when they might be improved the University has regretfully withdrawn its contribution.  All the roads around our city centre campus are scheduled for improvement. Although the Council is committed to a large programme which will help transform the city centre, unfortunately progress has been slower than we would have liked. Art on Campus forms part of this Coherent Campus initiative and, the City’s recent award of the Great Exhibition of the North in 2018 will allow us to further support the uplift of the campus. The Exhibition has targeted to attract 3 million visitors to the city, focusing on families and the 18 to 30 age range. The Exhibition will create three “walks” through the city converging on the Great North Museum. All three walks (each walk themed on Innovation, Design & Arts) pass through the campus. The footfall will be significant and creates a unique opportunity to promote the University and its campus and provide positive staff, student, and public engagement and recruitment outcomes. A location led study has identified opportunities to place loaned sculptures and develop interpretation boards to create an historical information trail and opportunities to promote the Universities achievements of the past and the future. Such a vision might form the commencement of a ten year plan, to expand on the summer 2018 events. The Coherent Campus budget had to be reduced in 2016-17 to circa £0.33m from £0.75m due to University financial pressure and there will be only a small sum available in 2017-18 to cover cycle parking and signage works.

3.3 Ensure Effective Utilisation of Space

Russell Target Measure 2000-01 2014-15 2015-16 Group 2016-17 Median Net internal area per 17.0 11.3 11.0 10.8 9.9* student FTE (m2) *estimated In 2000-01, Newcastle had one of the least efficient estates in our peer group with 17.0m2 per student FTE. A measure of this is net internal area per student FTE. We have since reported one of the best reductions in non-residential space per student FTE and are currently at 11.0m2 (Russell Group median 10.82m2). The rate of improvement bettered our peers by 1.2% points and based upon our December student numbers (+6.8%) and current estimated NIA our 2016- 17 target should improve again to 9.9m2 nearing the 2015-16 lower quartile of 9.67m2. To improve our research and teaching performance, we are developing new buildings, acquiring additional property and re-claiming commercial space for academic use. To address this issue the University is developing a more integrated approach to estate planning with a number of initiatives already established, including the following:  A cross faculty estates masterplanning group has been established to coordinate all estate development activities and maximize the benefit of capital investment. The group is chaired by the Deputy Vice Chancellor and comprises the three faculty Pro Vice Chancellors, Director of Estates and Head of Estate Planning and Development.  Space has been allocated, and is currently being refurbished, for the relocation of the Durham School of Medicine, Pharmacy and Health however much of the School’s activities are being accommodated in existing facilities in the SAgE and FMS faculties.  A joint initiative between the SAgE and HaSS faculties is reviewing the shared use of geotechnical laboratories.  The relocation of non-academic activities out of the academic estate is being progressed. SDU and LTDS have been relocated from King George VI Building and the relocation of other services are being planned. Another measure is gross internal area per student and staff FTE as this includes staff offices). The Russell Group median is 12.38m2 with lower quartile at 11.73m2. Since 2009/10 we have had one of the best improvements in the Russell Group with a 12.2% point improvement, having moved four places to 8th in the Russell Group. The rate of improvement bettered our peers by 2.2% points and based upon our December student numbers (+6.8%) and current estimated GIA our 2016-17 target should improve again to 11.6m2. As with m2 NIA/student FTE from 2018-19, current and planned developments will increase floor-space significantly, probably moving us away from the Russell Group median.

Russell Target Measure 2013-14 2014-15 2015-16 Group 2016-17 Median Gross internal area per 12.6 12.4 12.0 12.4 11.6* student & staff FTE (m2) *estimated Disposals: The majority of disposals this year have focused on the residential stock, including Easton Hall, Eland Lodge and Block P, St Mary’s Halls of Residence. With regards to the operational portfolio we are planning withdrawal from Level 4 and Level 7 of Core Building following the opening the Urban Sciences Building on Science Central. Our occupation of Levels 4 and 7 was always a short-term arrangement, owing to ERDF funding restrictions on the number of non-SME’s permitted to occupy the building, however, we are looking to retain some space on Level 7 to relocate SDU. In addition, we are currently looking at the future of the Henderson Old Hall and the Red Hall Drive playing fields.

3.4 Deliver ‘full life cycle’ value for money on all major projects

Acquisitions and completed projects include:  Black Horse House: Agreement reached with Lloyds Banking Group for the early surrender of their lease providing additional floor space to relocate administrative functions and release core academic space. Surveys are currently underway with a view to refurbishment works starting October 2017.  Brunel Way, Fareham: A 1,130m2 industrial unit housing Pumped Heat Energy Storage research project. The lease runs for an initial term of two years with the option to extend for a further two years.  Higham House: A lease of 320m2 of office space in the city centre for the Purchasing Hub. Further works to increase the occupation is currently underway.  Time Central: A lease of 294m2 of office space in the city centre providing a forward office for NICA. The lease of this accommodation will terminate upon the opening of the new Innovation Building on Science Central.  Medical School: We are currently in negotiations with the NHS Foundation Trust to accept a surrender of the space currently occupied by Public Health England.  Camperdown Industrial Estate, Killingworth: The building is owned by a company in which the University is a joint venture partner. The opportunity has arisen to sub-let some vacant offices and engineering workspace. Options are being explored.  Building Science: A £3.3m three storey extension (825 m²) to provide additional workshop and studio accommodation was completed in May 2017. The programme was extended to accommodate additional requirements from the faculty.  Campus for Ageing & Vitality: Phase 1 (£1.4m), a temporary location for the PET MR Scanner was completed in June 2016. The project was returned under budget at a project sum of £1.3m.  Herschel Levels 5 and 6: £5m refurbishment of space in Herschel Building for Paediatric Oncology encountered problems due to the poor performance of the main construction contractor and working within a fully occupied building. Construction commenced in September 2015 and was completed in September 2016. The project is expected to be returned under budget at a project sum of £4.6m.  Immunology (Leech Building): This £3.75m project refurbished seminar rooms on the second floor and laboratory facilities on the third floor of Leech Building in the Medical School. The programme was extremely short however the design team, contractor ESS and faculty collaborated well and the project was delivered two weeks ahead of schedule and under budget. The project has won a Constructing Excellence Integration and Collaborative Working Award. The project was under budget at a project sum of £3.2m.  NewRIIS: This £1.8m project provided research and professional development facilities at the University’s Singapore campus. Space has been leased in a new Innovation Hub building and the shell and core space fitted out to include laboratories, seminar rooms, offices and social learning space. The project was completed to an extremely tight project in April 2017 and is expected to be delivered within budget. Projects in progress  The Armstrong Building: A £26.7m phased project is well underway to comprehensively redevelop the HaSS parts of the Armstrong Building for completion by 2018. Phase 5A was completed in February 2017 with phase 5B currently on site with planned completion for September 2017. Phase 5B incorporates the remaining wing of the building facing the Quadrangle on the ground floor and Robert Boyle Lecture Theatre. It also includes for a new entrance to a landscaped inner courtyard that will connect a processional route through to the Student Forum and the refurbished Boiler House. Listed Building consent has been granted for the replacement of all windows (phase 5C) in the building with suitably designed double glazed units. Installation of the windows has commenced and will take place during phase 5B and beyond with completion expected in October 2018. Phases 5B and C are £9.4m. Future phases to remaining areas of the building are been considered, however there are no immediate plans to commence the work.  Boiler House: Following the relocation of the cavitation tunnel to Blyth, the refurbishment of this 225m2 section of the Boiler House as Event Space is underway. This will provide a high quality central campus event space and include an extension of the Student Forum landscape. The upper floor has been removed and the castellation is being reinstated. The project budget is £4.1m and is scheduled to complete in September 2017.  Emmerson Cavitation Tunnel: A new £1.74m purpose built facility co-located with the new Blyth Marine Station. Construction of the new building commenced in September 2015 and was completed in January 2017. The Emmerson cavitation tunnel has been refurbished and installed and final snagging and commissioning of the tunnel is underway.  Urban Sciences Building: Our second building (following the Key) on Science Central is a new 13,850m2 (£58m) building for the Institute for Sustainability and the School of Computing Science, releasing space in the Claremont/Daysh Complex and Devonshire Building that can be re-purposed. The USB incorporates extensive monitoring facilities creating a “building as a lab” with space for cross cutting sustainability research. Building work commenced in December 2015, with completion planned for September 2017. The scope of the project also includes site infrastructure on behalf of the Science Central partnership of the University and Newcastle City Council. Construction is progressing well for occupation in September 2017. The scheme incorporates sustainable drainage features for flood management and as research resources, partly funded by the UKCRIC research project.  Hatton Gallery: The bid to the Heritage Lottery Fund for £3.4m was successful and the £2.4m refurbishment of the Hatton Gallery started on site in August 2016 two months later than scheduled due to delays with the approval of the bid. The work was scheduled to complete in March 2017 however issues with the main contractor delayed the completion to May 2017. It is expected that the construction project will be delivered under budget.  Park View Student Residences and the wider site: Demolition of the existing Richardson Road accommodation blocks and a £78.3m redevelopment of the site to provide 1,279 bed spaces, an increase of 355 beds. Work started on site in August 2016 and is scheduled for completion for September 2018. Demolition of the Richardson Road flats and boiler house is complete however major remediation of the site was required following the discovery of significant amounts of asbestos in the ground. The first block of modular construction is complete with fit out and cladding of this block now in progress. Construction work of the remaining 5 blocks is in progress with the completion of the next block of modular construction expected to be complete by the end of June. The site proposals include flood management and other ecology measures.  Sports Centre New-build: As part of an overall £31.7m investment in Sports facilities, £25.7m has been allocated to an extension of the existing Sports Centre to provide additional facilities on Plot 3, Richardson Road is essential to satisfy the latent demand of our existing members, attract new members, support the expanding activities of NUSU, and enhance the student experience of sport at the University. The building will also incorporate laboratory facilities for the new Sports and Exercise Science programme. The design has been completed to RIBA Stage 4 and the tendering process for the main contractor is scheduled to be completed in July 2017. As part of this tendering process a NE Universities Major Capital Framework is being established. Construction work is scheduled to start on site in December 2017 and building works are scheduled to complete for opening in September 2019. As part of this project a major remodeling of the existing Sports Centre is being undertaken to expand the Health and Fitness facilities.  Cochrane Park Sports Facilities: As part of the upgrading of sports facilities £6m is being invested to upgrade the provision of three 3G artificial turf pitches with additional site-wide changing room, social/café and spectating facilities. Demolition of the existing New Halls including redistribution of services for the Old Hall will be an integral part of this project but funded separately from University strategic funds.  Learning and Teaching Centre: The third University building (£34.3m) on Science Central will provide lecture theatres, seminar rooms, social learning space and NUBS academic office accommodation. The main contractor has been appointed under a 2 stage design and build procurement and is working closely with the design team and ESS project team to agree a contract sum. The project is suffering some budget difficulties but extensive work is being undertaken to address these issues. Work is due to start on site in September 2017 with completion scheduled for May 2019.  Innovation Centre (Science Central Building 3): It has been agreed that the third and last University plot at Science Central will house the development of the University’s £50m Innovation Centre which will include the National Innovation Centre for Ageing (NICA) and The National Innovation Centre for Data (NICD). BEIS Funding has been awarded for the creation of two National Centres. The design is current at RIBA Stage 2 with work progressing to complete the Stage 3 design for August 2017 before tendering for the main contractor. The centre is due to be completed for early 2020.  Claremont Complex: Early planning has commenced around the use of space in Claremont Tower, Claremont Bridge and the Daysh Building, which will focus on the future space needs for HaSS. The scope of the project would also upgrade the building services and improve thermal performance of the external fabric. The design team has been appointed and is working closely with the faculty and ESS project team. Initial surveys and cost plans suggest that the refurbishment will cost ca 50m.  Relocation of Durham School of Medicine, Pharmacy and Health: Agreement to transfer the academic programmes from Durham University required provision of facilities for the start of the 2017/18 academic year. This work is predominantly focused on the refurbishment of the ground floor of King George VI Building and comprises the development of laboratory facilities and offices for the School of Pharmacy. Work commenced on site in February and is scheduled for completion in August 2017. The project budget is £2.5m.  Medical School: In addition to the refurbishment work in the King George VI Building work is also being undertaken in teaching labs within the Medical School the £1.2m refurbishment of the Anatomy and Clinical Skills Labs and the £1.3m refurbishment of Teaching Labs A and B will provide improved more efficient teaching facilities to accommodate the Pharmacy students and additional medical students.  Bedson Building Entrance: The current entrances to Bedson Building are poor from an accessibility and wayfinding perspective. This project will create a more prominent entrance directly off King’s Road which will make the building more open and accessible. Enabling works to relocate gas storage and deliveries has been completed and the works to complete the entrance are now underway. Work is expected to be completed for September 2017.  Claremont Building: Following the offer from Sir Terry Farrell to permanently loan his professional and personal archive to Newcastle University, Council has approved a £3.9m proposal to display material on campus with storage of the archive material off site. The Claremont Building will be refurbished to include an urban room and space for a student business incubator. The project is being developed in conjunction with School of Architecture, Planning & Landscape (SAPL). Future Projects In addition to the current projects above there are a number of future projects aligned with the University’s strategy or aspirations. Business cases have been or are being developed for these projects and are at various stages of the University’s governance and approval process. Approved Future Projects The following projects have Council approval and will be progressing through the design process to construction potentially within the next 12 months.  Marjorie Robinson Library Rooms (89 Sandyford Road): Dilapidation works and a £2.8m refurbishment of the ground floor, first and second floors for the Library was completed in January 2016. The relocation of the Open Lab group moving to the USB in September 2017 will vacate the two upper floors and enable their refurbishment as well as the replacement throughout of major infrastructure such as lighting, HVAC, lift and toilet facilities. It is proposed that the one wing of the first floor will provide staff office accommodation and the third floor further study space. ESS Improvements team will be working closely with key stakeholders to develop the design, the approved budget allocation for the project is £5.5m.  Black Horse House: Following the surrender of the lease in April 2017 the University has now taken vacant possession of the building. Survey work is currently being undertaken to ascertain the level of infrastructure and maintenance required and space planning options are also being developed for refurbishment and occupancy by the University Professional Services. An £80K budget has been approved to carry out survey works in advance of the main refurbishment of the building which is estimated at £2.2m.

Aspirational Future Projects

The following projects are included in the University’s capital investment plan however the project brief and business cases are not fully developed and therefore have not been fully approved. These projects have been presented to the Estates Capital Strategic Planning Committee and regular updates are presented to this group in preparation for submission through the governance process.

 Science and Engineering Excellence: In December 2015 SAgE submitted an options appraisal paper (Engineering Excellence) to Executive Board describing the outcomes of a fundamental review of engineering. The faculty has since reviewed their priorities and has completed a review of the Faculty structure with a significant change from 10 Schools to 4. Some minor enabling work has received approval and is being undertaken to facilitate the restructure and an Infrastructure Working Group has been established to fully review the estate development of the SEE project. Three priority areas are currently being reviewed, namely an Off Campus Strategy, an overall review of estate facilities with a view to centralising facilities and a shared Geotechnics Laboratory as a pilot for shared cross-faculty facilities. An estate masterplan and business case will be developed following the development and trials of these pilot projects.  Centre for Sports, Exercise and Psychology: A building on plot 4 of Richardson Road, of a scale to be determined but in the range of 5,000m2 to 8,000m2 to provide teaching and support space for the new undergraduate degree programmes in Sports and Exercise Science that will make a major contribution to expanding student numbers in FMS and to the University's growth agenda. The financial viability of this project is being considered and a business case is to be developed.  Castle Leazes: Castle Leazes student residences offer relatively poor quality accommodation with backlog maintenance in excess of £35m. Whilst the site is currently popular with students there is concern that the development of Park View Student Village may have an impact on this and voids may result. Initial investigation into the redevelopment of the site has therefore been undertaken as have early stage discussions with the city planners on the viability of developing the site. Options are also being considered for the funding of the redevelopment. This project is being considered as part of a wider Residential Strategy which will also be submitted for approval as the two projects are intrinsically linked.

4. Key Risks

Estate challenges of the growth agenda include delivering the largest scale capital programme the University has ever had and using the existing estate optimally to support academic activities. While floorspace utilisation has improved, using academic and administrative workspace more strategically is now a key issue. Estate masterplanning with Faculty PVCs and the draft revised Space Management Policy is beginning to address this, exploring the potential to share facilities and deploy University estate and finance more efficiently. Constructing and acquiring buildings continues to offer opportunities to use space differently e.g. the Urban Sciences Building together with Black Horse House frees floorspace in the Claremont Tower, Bridge and Daysh Buildings, providing potential for decant and refurbishment to help accommodate new academic programmes. Our ageing estate needs to be refurbished as services and infrastructure reach the end of their economic and operational life. The review of learning and teaching facilities to support increased student numbers highlighted the critical interdependency between pedagogy, IT and the physical learning environment. The approach to these needs to be integrated to develop more modern, digitally enabled interactive teaching and learning (through investment in the physical estate, IT hardware and software, and training and support for academics). Faculty estate strategies highlight estate related constraints on growth and development. To ensure a positive student and staff experience, we need to maintain investment in building condition and functional suitability. Inherent defects may require remediation as part of major projects, or may mean that a building is nearing the end of its economic life. Budgets have been adjusted in 2017-2018 as part of prudent University wide budgeting, continued investment is necessary to prevent growth in maintenance backlog and deteriorating condition. Some of the Learning and Teaching facilities refurbishment programme has been deferred. Climate change brings much greater risk of flooding and unseasonal temperature fluctuations, loss of buildings, power and inadequate functioning of heating, cooling and ventilation plant in conditions for which our buildings, infrastructure and landscape were not originally designed. As well as carrying out flood mitigation work on campus, ESS leads the Sustainable Urban Drainage Advisory Group for Science Central and is co-ordinatingcity stakeholders (the Blue Green Newcastle Group) to try to improve the flood risk in Newcastle. ESS also engages with the academic Urban Flood Resilience research project Local Area Research and Action Alliance, the principles from this are being deployed both at Science Central and on the main campus. Emergency and Business Continuity Planning are increasingly important and continue to be led by ESS. A recent audit found ESS project management is sufficiently resourced and well managed with good performance against programme and budget over many years, with projects generally on time and under budget. IT project management resource and capability is a fundamental aspect of delivering estate projects to enable University growth and activity as IT and buildings interface inextricably.

5. Future planning

The £100m loan from the European Investment Bank and the continued success in securing grant funding such as that for NICA and NICD has placed the University in a strong position to continue the development of the estate. However, the institution’s aspirations still exceed the University financial capability therefore estate development priorities need to be carefully considered. The scale of capital projects within the University’s investment plan exceeds the funding identified for capital development over the next ten years by approximately £30m, careful masterplanning is therefore essential. Major estate investment to support the development of new academic programmes and Faculty structures is required. This is currently being scoped by the faculties, and academic business cases are being prepared. Growth in student numbers is placing increasing pressure on the teaching estate. The short term issue with large capacity lecture space has been reviewed and is possible through re-profiling of the timetable (removing peaks and troughs in demand) to overcome the issue until the completion of the Learning and Teaching Centre in September 2019. The completion of the Urban Sciences Building this year and the future developments of the Learning and Teaching Centre and Innovation Centre fully utilise the University’s land allocation at Science Central and as the King’s Road site is constrained alternative expansion opportunities need to be considered. The further development of 89 Sandyford Road and the now vacated Black Horse House provides an opportunity to relocate Professional Services releasing much needed space in academic buildings. The acquisition of Great North House remains a priority and discussions are continuing with the Helmsley Group in an attempt to purchase the building. Assembling the freehold of this entire land area, including the Hancock public house and car park, is being investigated as it would create a land bank for the University to redevelop and expand in future. Alternative options are also being considered including the potential for redevelopment of the Windsor Terrace site. The potential of off-campus sites such as the farms, Blyth, Tyne Subsea and the recent joint venture with British Engines new lease of an industrial warehouse and offices at Killingworth offer opportunities which are being investigated. The SAgE faculty in particular, supported by ESS, is developing an off campus strategy for consideration and potential development. Work is being undertaken to develop a Residential Estate Strategy which is expected to be complete in the autumn of 2017. A key element of the strategy will be the potential redevelopment of the Castle Leazes site as the extended capacity of the site identified in the recently completed masterplan could provide the opportunity for the disposal of other sites providing much needed capital receipts. The funding models currently being investigated for the development may also provide additional capital receipt. The potential development of the Castle Leazes site also provides an opportunity to review the use of the moor for the management of surface flood water. A coordinated approach to this is being developed with the University, the City, NWL and the Environment Agency all interested in investigating the initiative. Discussions are at an early stage however the potential for the site to provide flood protection for both the University campus and the wider city is considerable. External funding options for the project may also be available and will be fully investigated. One of the key opportunities for maximising the efficiency and effectiveness of the estate is the holistic approach to estate planning. The recently formed Estate Masterplanning Group is at an early stage of this approach however some initiatives have already been identified and are being investigated. Further work by this group will inevitably lead to a more integrated approach to estate planning and the development of a revised Estates Masterplan. Since January 2016 Estate Capital Strategic Planning Committee (membership of which includes members of Council and lay advisers) has provided valuable and much appreciated strategic guidance at an early stage for major estate projects.

Clare Rogers, Director, Estate Support Service Professor Tony Stevenson, DVC, on behalf of Executive Board 14 June 2017

Overall Estate Performance Summary

To improve our research and teaching performance, a good quality, functionally suitable and safe estate is essential to support student and staff experience, teaching, learning, research and engagement, contribute to the Environmental Sustainability Societal Challenge and help the University’s reputation. Newcastle has made outstanding progress in the sector with estate improvement. To support improved quality through growth we will support teaching, learning and research activities, ensure that student estate experience is given high priority and deliver quality teaching and research environments to match or exceed our competitors. In the International Student Barometer 2016, Newcastle was first in the Russell Group student satisfaction survey for technology, second for physical library, third for condition of accommodation on arrival, Campus Buildings and learning spaces and fifth for campus environment. ESS has led on planning and delivering an exemplary programme of accessibility improvements working with disabled students to improve the estate. Estate Strategy has delivered improvements in the amount of floor space in functional suitability grades 1 & 2 (from 67% in 2007 to 91% in 2016) and floor space in condition categories A & B (from 78% in 2007 to 88% in 2016). Floor space let to third parties is 45,890m 2 GIA and we recycled 93% of our general waste (17% in 2007) with no general waste to landfill. For comparison the Key Performance Indicators are based on our Estate Management Return 2015/16 to the Higher Education Statistics Agency (HESA). There has been good progress with Estate Strategy objectives.

Institutional Strategic Estate Performance Comments Objective  To support existing and emerging areas of strength, research excellence and innovation, ESS works with units to create and improve added value and unique research facilities, reduce and rationalise inefficient research space and optimise use of research facilities Top 20 in the UK for  ESS together with partners in the ‘Urban Flood Resilience’ research project explores opportunities for research projects as catalysts for significant change. Opportunities continue to be explored on the campus with continued investment on Science Central  £13.2m was invested in research facilities in 2015-16  The £58m USB researches the environment  ESS supports student experience by developing and maintaining high quality teaching, learning and social spaces as well as continually improving general facilities and the campus environment, working with students on the Estate Student Committee and through focus groups  ESS reviews design, condition and functional suitability of teaching and learning rooms and continues to lead a multi stakeholder project developing ‘Innovative HE Teaching Space’ including flexible furniture solutions  Overall £18.2m was spent on teaching, learning, social space and the general environment  £2m was spent in 2015-16 on student residences projects. Satisfaction with overall student Top 20 in the UK for accommodation was voted sixth in the UK in the National Student Housing Survey student satisfaction  £3.8m was spent on long term maintenance  Over the last 2 years we invested £1.1m in Coherent Campus landscaping and improvements  £2.2m was expended on estate Improvement Projects funded by Units in 2015-16  The University is committed to continue providing excellent opportunities and investing in the quality facilities today’s students need and expect. These include a £30m investment in new state-of-the-art sports facilities, an area for improvement (4.2% points down on the Russell Group) highlighted in the ISB and a £75.5m project, which will transform Richardson Road into six new student accommodation blocks.  Library facilities are expanding, the Marjorie Robinson Library Rooms provides over 550 study spaces, including 220 desktop PCs and areas for group study, with further expansion planned for 2017-18  Awards include: Customer First Accreditation’ in February 2017 plus the Continuing Excellence (the highest level) for ‘Better Health at Work’ was achieved for the fourth year running in 2016. Shortlisted for the THES Award for Outstanding Estate Strategy & two highly commended awards for flood mitigation work. A significant international,  Excellent feedback about the estate was received from students in the International Student Barometer national and regional 2016, Newcastle was 1st in the Russell Group for student satisfaction for technology (13th internationally), 2nd for Library (14th), 3rd for Campus Buildings (57th), 3rd for learning spaces (69th) and 5th for campus environment (49th) profile and reputation which attracted the highest levels of satisfaction (96.2%). 95.9% of students were satisfied with the library, 93.6% the campus buildings, 94.7% the technology, 93.1% the laboratories, 91.9% the learning spaces and 95.5% of students felt that Newcastle University was a good place to be with 93.1% feeling safe on the campus  ESS supports art on campus and is planning initiatives for the Great Exhibition of the North. Financial and  Success with space management includes space sharing to free up underperforming estate for Environmental alternative use, such as Third Party use, supporting co-location of research with industry, and encouraging the Sustainability use of vacant space to support spin-out and spin-in businesses and develop third strand and/or commercial activities. Lab incubees will relocate to Science central in 2018.  Core academic floorspace released by developing / purchasing new buildings enables major rationalisation and improvement and its use is carefully planned to support and grow academic functions  Estate expenditure is controlled to ensure projects are within budget. The level of investment is generally appropriate to maintain a good condition, functionally suitable estate though some buildings are nearing the end of their lives. Audit Committee has commended ESS project management.  More detail on our Environmental Sustainability performance is provided in the separate report on this Institutional Strategic Estate Performance Comments Objective

subject. Estate Strategic Objective KPIs and Targets Performance Comments

Suitability 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Target 75% 82% 84% 89% 91% 91% 90% Target: 90% of estate Achieved 80% 82% 87% 91% 91% 91% recorded as class 1 & 2 in EMR Estates We have made significant improvement (from 34% in 2000-01) with function suitability at Management Record upper quartile (90.98%) for the Russell Group with a median of 88.0%. Further estate rationalisation, particularly co-location of facilities by Faculty/Support disciplines will 2016-17 target: 90% further improve the functional suitability of space. Due to recent structural issues in some Functional of our buildings our target will reduce to 90% for 2016-17 however on completion of the suitability of the Armstrong and Claremont projects functional suitability will improve dramatically. estate Teaching 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Target: 95% of Target 95% 95% 95% 96% 96% 95% lecture theatres and teaching rooms at Achieved 95% 95% 95% 96% 95% 91% G grade 1 and 2 for *provisional functional suitability G Surveys are undertaken biennially by ESS, the Scheduling Office and the Estate Faculty 2016-17 target: 95% Coordinators. The latest surveys indicate a drop to 91% however we are at the start of the next refurbishment cycle and therefore the summer survey will show improvement. Condition 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Target 83% 89% 89% 89% 89% 89% 88% Actual 88% 89% 88% 88% 88% 88%

Target: 88% recorded Condition is at upper quartile (88.0%) for the Russell Group with a median of 77.4%. as condition Condition of the Condition has been maintained at 88% however, due to a reduction in Long Term G category A & B estate Maintenance funding the target for 15-16 will reduce to 88%. Focus has moved to G infrastructure refurbishment, the High Voltage Network requires equipment upgrades and 2016-17 target: 88% the underground duct system also requires remedial works. Opportunities to increase estate condition are limited due to the need to complete high priority work which does not necessarily affect the overall estate condition. The next opportunity to significantly improve overall estate condition will be completion of the Claremont/Daysh refurbishment project. 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Estate m2 216,437 212,792 208,396 211,344 216,031 219,118 222,376* NIA FTE 18,730 18,957 18,481 19,629 20,344 21,116 22,544* Target 11.4 11.1 9.9* 2 Target: 11.0m net Actual 11.6 11.2 12.0 11.4 11.3 11.0 internal area (NIA) *estimated per student FTE by G 2018-19 In 2000/01, Newcastle had one of the least efficient estates in our peer group with G 17.0m2 per student FTE. The Russell Group median is 10.85m 2 with lower quartile at 2016-17 target: 9.9m2 9.68m2. We bettered our target and probably will in 2016/17, however based on current development proposals we estimate from 2018-19 our floor-space will begin to increase, moving further away from the Russell group median and our target for 2018-19 has been adjusted accordingly. In assessing the 2018-19 target we have taken a very modest view re student growth therefore the negative impact may not be as great as currently forecast. 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Estate m2 337,697 321,281 322,774 316,444 320,748 322,984 327,541* GIA Space efficiency FTE 23,219 23,498 23,613 25,071 25,920 26,920 28,347* Target: 12.7m2 gross Target 13.5 12.5 12.6 12.2 11.6* internal area (GIA) Actual 14.5 13.7 13.7 12.6 12.4 12.0 per student and staff *estimated G FTE by 2018-19 G Whilst student and staff FTE are difficult to predict, we bettered our 12.2m 2 target. The 2016-17 target: Russell Group median is 12.38m2 with lower quartile at 11.73m2. As with NIA per 11.6m2 student FTE we estimate from 2018-19 our floor-space will begin to increase, moving further away from the Russell group median and our target for 2018-19 has been adjusted accordingly. In assessing the 2018-19 target we have taken a very modest view re student and staff growth therefore the negative impact may not be as great as currently forecast. Frequency 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Target: 60% Target 54% 57% 60% 60% 60% 60% 60% frequency of use of G all teaching rooms Actual 50% 52% 62% 58% 59% 61% G 2016-17 target: 60% Whilst it is difficult to control frequency of use we exceeded our target of 60%. The Russell Group median is 59% with upper quartile at 66.7%. Estate Strategic Objective KPIs and Targets Performance Comments

Utilisation 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Target 28% 29% 30% 29% 30% 30% 30% Target: 30% utilisation of all Actual 29% 26% 30% 27% 26% 27% Teaching Space AG teaching rooms utilisation While the complexity of the curriculum, number of modules and patterns of teaching G 2016-17 target: 30% constrain utilisation, there is good practice as most teaching is evenly spread across teaching hours and the week. Auditing is carried out on 2 weeks per annum. Russell Group median is 29.6% with upper quartile at 43.2%.

Expenditure 13-14 14-15 15-16 16-17 17-18 Per Annum 1,000,000 903,000 510,000 332,000* Nil* *provisional spend

Target: 100% The Coherent Campus aims to improve the spaces between buildings to create a sense completion of the of place that is welcoming, with well-designed and well linked social spaces. The main Campus Coherent Campus campus aims to be permeable, pedestrian and cyclist friendly, safe, clean and tidy, G external Environment initiative visually recognisable, clearly defined and environmentally sustainable. There is a draft under Coherent G programme of works to 2021 and whilst there is no budget for 2017/18 excellent Campus principles progress has already been made. by 2021 In 2015-16 we completed the relocation of the Recycling Centre to Park Terrace, the Greening Plan Review, Lovers Lane, Herschel Turning Circle, Armstrong Vehicular Access, Recycling Bin replacement, further Bicycle Storage, Wayfinding Signage and INTO improved Assembly Lane.

Income/m2 GIA 11-12 12-13 13-14 14-15 15-16 16-17 Estate m2 GIA 321,281 322,774 316,444 320,748 322,984 327,541* Target – income per Income pa £’000 364,590 393,496 425,896 462,557 452,529 487,900* m2 GIA to exceed Actual income/m2 £1,135 £1,219 £1,346 £1,442 1,401 1,489* TRAC group median AG *estimated AG 2016-17 Target: The University’s finance reporting changed significantly in 2014/15 with the introduction £1,489/m2 of the new FRS102 accounting standard. The metrics for 2010-11 to 2014-15 have not been adjusted to the new accounting standard. Whilst we estimate from 2018-19 our floor-space will begin to increase it’s anticipated that our income for 2016/17 will hit £1,489 per m2 GIA. Affordability Year 11-12 12-13 13-14 14-15 15-16 Non-Res IRV £’000 785,925 871,132 916,013 1,054,584 1,071,115 Target: 2.00 for IRV Non-Res Income 364,590 393,496 425,896 462,557 452,529 (estate insurance £’000 replacement IRV as proportion of 2.16 2.25 2.15 2.28 2.37 AG valuation) as a income AG proportion of total Non-Residential A measure of estate affordability is the ratio of insurance replacement value (IRV) to income institutional income. This measure identifies estate values that are disproportionately expensive in comparison to institutional income. IRV will be reviewed in 2017. For benchmarking purposes 3% is added per annum. The Russell Group median is 2.00.

Year 11-12 12-13 13-14 14-15 15-16 Non-Res IRV £’000 785,925 871,132 916,013 1,054,584 1,071,115 Non-Residential Expenditure £’000 43,081 27,080 39,912 38,418 45,183 Expenditure as % of Estate Expenditure 5.5% 3.1% 4.4% 3.6% 4.2% as a proportion of IRV Investment levels AG IRV AG An independent report advises that indicative expenditure should be close to 4.5%. Target is median for Based upon this, spend should have been £48.2m compared to £45.2m. The average TRAC group spend over the last five years has been 4.16%. In the next few years we need to invest in infrastructure improvements, student experience and high quality teaching and research environments that match or exceed our competitors. The Russell Group median is 5.54% (upper quartile 7.33%).