Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN 2 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
1. INTRODUCTION
Edinburgh BioQuarter is one of the UK’s largest development opportunities in the life sciences sector. This document has been developed by the Edinburgh BioQuarter Partners to provide detail on plans to create a world leading healthcare focussed innovation district; a vibrant economic community that will spread increased wealth and well-being locally, nationally, and internationally. The document forms part of a premarket engagement exercise in advance of a formal procurement process to identify and secure a private sector joint venture partner. Details included are subject to change as proposals are developed over the coming months. To help inform these proposals we would really like to hear from you via the accompanying PIN Questionnaire.
1.1 PARTNERSHIP Edinburgh BioQuarter is currently a partnership between the Over these past 2 decades, the 167-acre site, located 3 miles City of Edinburgh Council, NHS Lothian, Scottish Enterprise and south of Edinburgh City Centre, has developed extensively. the University of Edinburgh; together the Edinburgh BioQuarter BioQuarter Partners have invested over £500 million of capital Partners. This longstanding strategic partnership is governed by for buildings, infrastructure and specialist equipment with a a Strategy Board, chaired by Paul Lawrence, Director of Place for further circa. £300 million of pipeline academic and clinical the City of Edinburgh Council. The Strategy Board oversees the projects planned over the next decade. Funding to date has been strategic development and stewardship of BioQuarter in line with provided by the individual BioQuarter Partners, research councils, the shared vision. The partnership will be further strengthened philanthropic and government investment. through the formation of a new legal structure, which will also be the contracting authority for the procurement process. By 1.4 BIOQUARTER TODAY combining their skills, expertise, specialisms, brands and resources the BioQuarter Partners have created a unique and compelling Currently home to a community of around 8000 staff and opportunity. students as well as significant numbers of patients and visitors, the site is a melting pot of talent and facilities in commercial, 1.2 PUBLIC–PRIVATE JOINT VENTURE academic and clinical research, bioinformatics and data- driven innovation. At its heart is the aforementioned Royal The proposal is to undertake an OJEU procurement exercise to Infirmary of Edinburgh (RIE). With its circa. 900 beds it is one select an investment and development private sector partner with of Scotland’s major acute teaching hospitals and tertiary care the financial means and experience to accelerate delivery of the centres. Alongside the RIE is the soon to be opened Royal vision in a new joint venture with the BioQuarter Partners. Hospital for Children and Young People and Department of Clinical Neurosciences. BioQuarter is also home to the University The procurement process will be designed to ensure selection of of Edinburgh Medical School with its specific research strengths the right private sector partner. This may be a single organisation including brain sciences, advance technology, regenerative or group of organisations that together can demonstrate: access medicine, medical informatics, data-driven health innovation and to capital (with the focus on long term returns rather than short translational medicine. At its core, BioQuarter exists to advance term gains), experience in the development and management healthcare discoveries and education, improve people’s lives and of similar science and technology focussed mixed use sites and a enhance health and well-being. commitment to the creation and development of a vibrant and productive innovation ecosystem that will underpin success. 1.5 EXISTING INNOVATION ECOSYSTEM 1.3 BACKGROUND BioQuarter’s ecosystem, like all ecosystems, is taking time to develop (in a systematic way that plays to its key strengths as In 1997, Scottish Government obtained planning permission noted above), but already has some notable successes including for land in the Little France area of Edinburgh. This allowed the creation of several new University of Edinburgh spin out the relocation of the city’s Royal Infirmary of Edinburgh and companies. Commercial space at BioQuarter is located in the University of Edinburgh’s Medical School from their historic NINE and BioCubes which are owned and managed by Scottish sites in the City Centre, as the first stage in the creation of a Enterprise. NINE, which was opened in 2012, provides a mix of new bioscience neighbourhood. Development commenced incubator and grow-on space for life sciences companies. It has immediately and in 2002 NHS Lothian opened the first building been home to more than 25 SMEs, at varying stages of growth to patients – the new Royal Infirmary of Edinburgh. At the same and from across the life sciences spectrum. Currently there are 14 time the University completed the first phase of relocation of companies based in NINE. the College of Medicine and Veterinary Medicine with the move of medical teaching and research to the adjacent Chancellor’s Building and Queens Medical Research Institute. In 2004 Scottish Enterprise acquired the surrounding land with a view to establishing one of Europe’s leading science parks for life sciences companies – the first location in the UK to co-locate academic research, clinical development and commercial research at scale: delivering the reality of “bench to beside” medicine. In 2007 the site was named as Edinburgh BioQuarter. 3 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
Phased Development Plan
Completed Zone 1 Completed Zone 2
Partners’ Pipeline Zone 16 JV Partners’ Zone (to be developed in phases)
Partner Expansion Zone 8 10 11
1. Edinburgh Imaging 2. Queen’s Medical Research Institute 9 12 3. Anne Rowling Regenerative Neurology Clinic 4. Chancellor’s Building, Edinburgh Medical School 6 5. Royal Hospital for Children and Young People and Department of 14 Clinical Neurosciences 13 6. Simpsons Centre for 7 Reproductive Health 4 7. Royal Infirmary of Edinburgh 8. University of Edinburgh MRC 3 Centre for Regenerative Medicine 15 9. Centre for Tissue Repair 2 10. BioCube 1: Centre for Dementia 5 Prevention 11. BioCube 2 12. NINE - Life Sciences 1 Innovation Centre 13. Usher Institute 14. New Medical & Biomedical School 15. Princess Alexandra Eye Pavilion 16. University of Edinburgh Research 4 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
2. THE VISION
The Edinburgh BioQuarter Partners long term vision for the BioQuarter is transformational and represents a significant strategic development opportunity for Edinburgh and Scotland as a global destination.
2.1 VISION: EDINBURGH’S HEALTH INNOVATION 2.2 PLACEMAKING VISION DISTRICT Placemaking is an essential component in realising the vision. The BioQuarter Partners are unified in their ambition to transform The new neighbourhood will deliver an attractive, welcoming BioQuarter into Edinburgh’s Health Innovation District. The vision urban quarter for people to live, learn, work, play relax and is to rapidly grow the site into a new mixed-use neighbourhood discover. The vision is to create state-of-the-art health innovation of Edinburgh, centred around a world leading community of facilities that will sit alongside shops, cafés, hotel, nursery and healthcare innovators. Through a public-private joint venture, by residential homes, creating a critical mass of people and a lively developing at scale and pace, BioQuarter will accelerate solutions environment that promotes the health and wellbeing of its to global health challenges. community. A place where people want to be.
The vision is to grow BioQuarter from a national to a global Essential to realising the vision of creating Edinburgh’s Health destination and become one of the UK’s largest single Innovation District is the emerging Placemaking Strategy. developments focussed on health. The strategic driver is to accelerate advances in healthcare and well-being, expediting The Placemaking Strategy has 4 key components the discovery of new diagnostic tools and treatments for us all. BioQuarter also has the potential to form an integral part of • Town planning and Public Realm: increase densities, heights, the continued regeneration of the local communities with jobs, and quantum of mixed-use accommodation to create the skills and education, and to bring significant health, social and critical mass of people and facilities economic benefits to Edinburgh and Scotland. With a worldwide • Sustainability and Well-being: zero carbon, future climate ready life sciences market value of £868 billion and an anticipated and biodiversity net gain annual growth of 8 to 10 percent, the commercial life sciences, data innovation and biomedical sectors are crucial to the global • Connectivity: ensuring that movement around the site is economy. In this growing market, it is essential that BioQuarter is both safe, enjoyable and easy. Ensure that the BioQuarter is established to compete on a global platform with the leading life connected to both the local areas with investment in active sciences and healthcare offerings. travel and wider Edinburgh with public transport Community: BioQuarter is about people and ensuring that BioQuarter is one of only a small number of locations in Europe • we are inclusive for the local communities in terms of skill, offering the combination of globally ranked academic and education, employment and facilities. clinical research activity at scale and a significant quantum of undeveloped land. BioQuarter Partners believe that the long- The strategy will lay out a series of principles for each component. term potential scale of commercial development opportunity is These are the essential ingredients needed to create a thriving unique and will be very attractive to the commercial market. and economically successful urban environment - Edinburgh’s Health Innovation District. Key to the success of an innovation district is people. Its community is the key component of creating Edinburgh’s Health Innovation District with a vibrant and productive ecosystem that will generate success not only by attracting companies, investment and talent, but also through the commercialisation of world leading technology and innovation.
The BioQuarter development opportunity has the potential to be a powerful tool for local/regional economic and social regeneration. It can deliver social value and well-being within the socially disadvantaged communities that are also our neighbours. It is therefore essential to ensure that the expanded BioQuarter is accessible to local communities and also inclusive in its approach to identifying and implementing social impact initiatives such as creating tangible opportunities for employment, education and community enhancement. 5 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
3. LAND AND PROPERTY
3.1 LAND AND PROPERTY 3.2 STATUTORY PLANNING STATUS The overall Edinburgh BioQuarter site extends to c167 acres of The most recent masterplan approved by City of Edinburgh land. Currently this includes: Council (CEC) as planning authority in 2014 allows 245,000 sq.m (2,637,180 sq.ft) of life sciences accommodation and 50,000 sq.m • 2 million square feet of existing specialist accommodation (538,200 sq.ft) of ancillary accommodation. This masterplan (teaching, clinical, imaging, research, commercial health underpins the existing Supplementary Guidance for the site which innovation tenant and data innovation) that has been built by sits alongside the 2016 Local Development Plan (LDP). While the Edinburgh BioQuarter Partners over the past 2 decades the majority of the principles laid out in the existing masterplan remain relevant, there is scope to increase the density and critical Land designated for future partner pipeline capital projects • mass alongside an increase in the scale of residential and mixed- • surface carparking and public realm use ancillary accommodation to create a more vibrant Innovation District. • ancillary facilities 1 • circa. 61 acres of available undeveloped land A new Statutory Planning Place Brief is being prepared to support the updated density, heights, massing and views. It is the crica. 61 acres of undeveloped land that is the focus The intention is to have the Place Brief ready to go to the City of the procurement exercise. This land is owned by Scottish of Edinburgh Council Planning Committee in autumn of 2020 Enterprise and will be released to the private sector partner at alongside the next stage of City Plan 2030, the new Local market value for development under a ground lease as each Development Plan for Edinburgh. building or buildings comes forward. Separate agreements would be established to release land and transfer title in stages on 3.3 ON AND OFF-SITE INFRASTRUCTURE satisfaction of certain criteria, including agreement of a business REQUIREMENTS plan and funding package on a stage by stage basis. As with all major development sites, to unlock a new vision, The other zones of undeveloped land within the BioQuarter both on and off site infrastructure is one of the most critical boundary are under the ownership of the individual BioQuarter issues to be addressed. In October 2019 the BioQuarter Partners Partners. It is envisaged that this land will be developed by commissioned a study to assess the infrastructure requirements of these organisations over the next 20 years as part of their own increased density and mixed use of the undeveloped land driven individual Estates Strategy which are aligned to the overall by the revised vision. collective vision. The pipeline of projects includes: Although the trigger for this study was the infrastructure • Institute for Regeneration and Repair (University of Edinburgh): required to support the new vision, the team’s scope was site- when completed, and together with the existing Centre for wide to ensure that the BioQuarter Partners’ pipeline projects Regenerative Medicine, will comprise the world’s largest were included. In addition, existing buildings were covered number of stem cell scientists on a single site to understand if any retrofitting was required to align with sustainability or energy targets. On-site connectivity and • Usher Institute (via the Edinburgh and South East Scotland City sustainability were also a key output. Region Deal and the University of Edinburgh): a hub that will house centres for Medical Informatics, Population Health, Global This study has now concluded, and individual strategies have Health, Self and Society and the Edinburgh Clinical Trials Unit been created for all infrastructure elements and associated costs. The delivery strategy for infrastructure is currently being • New Biomedical and Medical Teaching Building (University developed by the BioQuarter Partners. of Edinburgh): co-location of all the University’s medical and biomedical teaching (over 2500 undergraduate students) • New Princess Alexandra Eye Pavilion hospital (NHS Lothian): working closely with industry, the new state-of-the-art facility aims to drive a step-change in eye care processes, remote diagnosis and monitoring • New Centre for Laboratory and Forensic Science: a joint development housing a variety of complementary services provided by and for the NHS, Council, University and Crown Office.
Available land for mix use expansion at scale. Significant undeveloped land owned by scottish enterprise – circa. 61 acres.
1 A Place Brief is a set of high-level principles which shape the future development of a site. It is a place-based approach and incorporates the views and aspirations of the local community. 6 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
3.4 ACCOMMODATION As part of the Placemaking Strategy it is essential that a mix Community Space of accommodation is located at BioQuarter. This is to create a • Public Outreach Centre that could be used for teaching, more urban environment, critical mass of people and to attract collaboration, exercise by all communities facilities that will make BioQuarter a great place to live and work. GP, well-being and dental surgery accommodation. To inform the mix and quantum of accommodation that the site • can accommodate, a supply and demand assessment of space Ancillary Retail and Leisure has been undertaken. • Branded ‘lifestyle/business’ hotel with the operator brand being a minimum 3*+ rating and facilities to include a restaurant, • Demand: assessment of the demand for space for the various conference facilities and gym mixed use elements to inform the mix and quantum of accommodation required to support the vision both short and • Supermarket/food convenience store long term. From this an assumption of accommodation is being developed • Nursery • Supply: assessment of the supply of space that the site can • Gym accommodate to inform the phasing and viability • Retail and leisure
The supply assessment concludes that the capacity of the full Carparking available land is circa 3.5 - 4 million square feet of development • Multi-storey car parking [600 spaces] for life science tenants - floor area (GIA) with a mix of building heights. this will be developed in line with the wider emerging Edinburgh car parking strategy and car parking facilities elsewhere on the The demand assessment concludes that the demand for the site, and will depend on the final mix of accommodation various types of accommodation is both short and long term. • Surface car parking associated with residential. To ensure that BioQuarter is developed to align with the Residential Accommodation BioQuarter Partners vision, the available undeveloped land has • Mix of residential housing (for sale or lease) been designated into 2 zones: JV Zone 1 and JV Zone 2. • Affordable housing (in line with City of Edinburgh Council - JV Zone 1 is centred around a town centre.This town centre policies) is framed by the new Usher Institute which will be built by Potential key worker accommodation the University over the next 2 years and the existing Building • NINE commercial tenant building. It will have a mix of office/ • Longer term potential student accommodation laboratories commercial space blended with residential, retail, community, hotel, and nursery facilities. On and Offsite Infrastructure • Infrastructure – quantum not yet established; the private - JV Zone 2 will be a mix of office/laboratories commercial space sector partner will be required to contribute/deliver agreed blended with residential. infrastructure. An infrastructure strategy is currently being developed These proposals for JV Zone 1 and JV Zone 2 will continue to be developed as part of the City of Edinburgh Council’s Planning • Placemaking / public realm / connectivity - creation of Department requirements ahead of the OJEU procurement high-quality public realm space and connectivity routes is process. This mix of accommodation will be informed by the fundamental to the vision of the Edinburgh BioQuarter Partners. market feedback and the community consultation which is taking This has been demonstrated by the recent investment in the place as part of planning. completion of a main link across the site.
The assumption of accommodation for potential inclusion is listed As the quantum of accommodation is higher than currently below: permitted under the existing planning approval, these proposals are subject to City of Edinburgh Council Planning Department Commercial Tenant Accommodation approval of the new Place Brief, which will be concluded by the time the formal procurement process goes live. • Range of commercial office/laboratory accommodation • Innovation Hub including labs and offices aimed at multi- occupancy, open plan space capable of being subdivided to meet a range of health innovation uses and which is operated in conjunction with Building NINE and the BioCubes. It will be located adjacent to Building NINE. The primary function of the Innovation Hub will be to support new and growing businesses. 7 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
3.5 CORE AMBITION 3.6 JV ZONE 1 To ensure that BioQuarter is developed in line with the JV Zone 1 is emerging at 1.2 – 1.5 million square feet of gross vision to create Edinburgh’s Health Innovation District, the development floor area (GIA). The quantum of accommodation BioQuarter Partners require a quantum of commercial tenant for JV Zone 1 is being developed and is potentially: accommodation including the innovation Hub to be delivered in tandem with a quantum of the residential accommodation and • Commercial Tenant (30% - 40%) a quantum of the ancillary accommodation for JV Zone 1. How Residential (55%) this is achieved is being developed as part of the procurement • strategy development. • Ancillary and Community (5% - 15%).
An initial appraisals has been undertaken for JV Zone 1. Based on the corresponding masterplan and accommodation assumptions, together with market aligned cost and revenue inputs, a gross development value of circa £500 million has been calculated for JV Zone 1. At this stage, a detailed assessment for the entire development area available to the private sector partner has not been calculated, but the gross development value for both zones is estimated to be in the order of £1 billion. 8 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
4. JV SCOPE OF SERVICE
The Edinburgh BioQuarter Partners intend to seek a private sector partner with whom to establish a joint venture development vehicle to accelerate the future development of Edinburgh BioQuarter.
4.1 ROLE OF EBQ5 The joint venture development vehicle to be formed is called - property: coordinate all phases of placemaking including EBQ5. The role of EBQ5 is to develop a mixed use health detailed master planning, town planning approvals, design, innovation on the land currently owned by Scottish Enterprise. procurement, construction delivery, acquisition and lease - finance: work with the project funder(s) on all aspects of 4.2 CORE SERVICES TO BE PROCURED financing the work The proposal is to undertake an OJEU procurement exercise to select a private sector partner with whom to establish a new 2. Construction Services public-private joint venture to deliver the vision. The final details Construction services will be required to demonstrate that bidders will be set out in the full OJEU procurement scope of works. have the capacity, expertise, breadth of experience and quality required to undertake the range of infrastructure and building The procurement scope will cover both JV Zone 1 and JV Zone projects required for a major mixed use development. These are 2, however JV Zone 2 will be subject to satisfactorily meeting required for the JV Zone 1 and, if successfully delivered, JV Zone 2. the development requirements of JV Zone 1. In addition, some This may also include potentially other capital projects required services maybe requested for projects being taken forward by the by the BioQuarter Partners on their own land at the BioQuarter. BioQuarter Partners that are not in either JV Zone 1 or 2 but in areas in the wider Edinburgh BioQuarter site. 3. Hard and Soft Facilities Management Services Management of services for all soft and hard FM services are a There are 3 key attributes the BioQuarter Partners are seeking in core service required for JV Zone 1 and, if successfully delivered, selection of the private sector partner: JV Zone 2 and possibly other are-as owned by the BioQuarter Partners on their own land/buildings at the BioQuarter. • Funding and financing arrangements for services - it is expected that bidders will set out how this service will be 4. Innovation Ecosystem Support Services provided to meet the outcomes for the partnership BioQuarter already has an innovation ecosystem. At the core of the private sector partner requirement lies the need to • Demonstrable experience and skills – it is expected that bidders develop, diversify and grow this ecosystem in partnership with set out their experience and track record of developing and the Edinburgh BioQuarter partners. To support this, Innovation operating a science, health and technology site, park or district Ecosystem Support Services are required. This team will be including day to day management, physical environment and required to support new and existing businesses grow and ecosystem develop in the Edinburgh BioQuarter. These services will be • Commitment to a commercial life science/health led approach primarily focussed on supporting the businesses in health, well- to the development of BioQuarter being, life sciences, data led innovation, pharmaceutical and med tech across the full BioQuarter site. This will complement wider There are 5 core services being explored for the OJEU innovation support services already operated by the BioQuarter procurement are as follows. Note some services are focused on JV Partners. Zone 1 and JV Zone 2 and others maybe across the full BioQuarter site: 5. Community and Social Benefit Services Community and Social Benefit Services are required as a core part 1. Management and Development Services of delivering the vision and of the obligations required from the Management and Development Services is the key service planning authority. This team will be required to support new being procured. This ‘core team’ will be central to directing and grow existing community and social inclusion and benefit and coordinating the many team members and complex details regarding skills, education and employment. This will complement involved in the development of JV Zone 1 and JV Zone 2 and work already operated by the BioQuarter partners. management of the innovation district and ecosystem. The model is flexible but will require:
- management: day to day running of a mixed use, multi stakeholder Innovation District including financial, demand, commercial and overseeing Innovation Ecosystem Support Services, Hard and Soft FM services and Community and Social Benefit Services - development: short and long term development of BioQuarter 9 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
Strategic Drivers Behind The New Vision
ONE TWO THREE Create the foundation of Position BioQuarter Accelerate Solution the Edinburgh Health Globally for Health & Wellbeing Innovation District
FOUR FIVE SIX Create a Successful Place Benefit to the Local Communities Deliver Economic Growth for People to Thrive – skills, jobs & health for Edinburgh & Scotland 10 Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN
5. PROCUREMENT PROCESS
The Edinburgh BioQuarter Partners envisage a Competitive Dialogue procurement procedure (as set out in Regulation 31 of the Public Contracts (Scotland) Regulations 2015 or any successor legislation) being undertaken to select any private sector partner. It is anticipated that this procurement process will commence in Q1 2021.
5.1 PRIOR INFORMATION NOTICE 5.2 FREEDOM OF INFORMATION (FOISA) In advance of undertaking the procurement process, the Under the Freedom of Information (Scotland) Act 2002 (FOISA), BioQuarter Partners are undertaking a Prior Information Notice the Edinburgh BioQuarter Partners may need to disclose and/or (PIN) in order to carry out open market testing with potential publish any information you send. If you are of the opinion that private sector partners, operators, users and other interested any of the information included in your response is considered parties in relation to proposals for the development of BioQuarter. commercially sensitive or confidential, please identify it and explain (in broad terms) what harm might result from disclosure Bidder Day: and/or publication. Potential bidders/responders should be All interested parties are invited to attend the virtual Bidder Day. aware that, even where you have indicated that information is The event will provide interested parties with the opportunity commercially sensitive or confidential, we may be required to to hear further information about BioQuarter and the future disclose and/or publish it. procurement. 5.3 DISCLAIMER Questions: During the PIN process, interested parties may submit questions Dates and other information contained within this document, the via the secure Q and A facility on Public Contracts Scotland. PIN notice and associated attachments are communicated as All questions from interested parties and responses from the being indicative only and may be subject to change. Neither the BioQuarter Partners will be published for the benefit of all contracting authority nor the other Edinburgh BioQuarter Partners interested parties. will be liable for any costs incurred by those responding to the PIN, expressing an interest in, submitting a response, or subsequently Questionnaire: tendering for any future opportunity. Compliance with all relevant All interested parties are invited to respond to the questions set legislation is required during the procurement process and the out in the Questionnaire. The purpose of the Questionnaire is to terms of any resulting contractual agreement which will be seek feedback on key topics which the BioQuarter Partners are subject to the law of Scotland. interested in exploring with interested parties.
Responses to PIN: Neither the BioQuarter Partners nor responders shall be bound by the content of responses to the Questionnaire. The feedback received will be considered and used to further inform proposals for any development and any procurement process which follows. The BioQuarter Partners will decide at their absolute discretion whether it would be appropriate to make changes to the approach, requirements or documentation, prior to formally commencing the procurement process, whilst observing their obligations to treat all prospective bidders fairly.
The BioQuarter Partners do not guarantee that the development of the site will proceed or that there will be any associated procurement
For the avoidance of doubt: • this PIN is not a call for competition; • interested parties will not be prejudiced in any future procurement process by any response/failure to respond to the Questionnaire and/or to attend the Bidder Event; and • requirements for the private sector partner will be made available on the commencement of any procurement procedure in accordance with the Public Contracts (Scotland) Regulations 2015. Edinburgh BioQuarter Innovation District Joint Venture Fact Sheet For PIN