Crown Estate backs turnaround of Oxford’s former Debenhams store

Oxford Science Enterprises and Pioneer Group have secured £125m of financing from the Crown Estate to develop specialist real estate facilities for science, technology and innovation companies in the heart of Oxford. The plan was first revealed by EG in January.  The former Debenhams department store changed hands in a £32m deal late last week. The building is owned by DTZ Investors, which acts on behalf of Strathclyde Pension Fund. Glasgow City Council is acting as an administering authority for Strathclyde Pension Fund. The deal also features a newly created 200-year long-leasehold interest, with an annual 5% gearing on the contracted rent. The transaction marks the start of a partnership that has a long-term ambition to invest up to £1.5bn to support the UK’s science, technology and innovation sectors. The conversion of the site will feature the provision of 126,000 sq ft of life sciences facilities at 1-12 Magdalen Street in the heart of Oxford, which is expected to address limited city centre supply for both laboratory and office space. It will be the third shopping mall redevelopment project in Pioneer Group’s portfolio alongside Victoria House in London and the Grafton Centre in Cambridge. Ben Brinded, head of investment at the Crown Estate, said: “In order for the UK to be a science superpower, we need to provide the right ecosystem that allows start-ups and scale-up businesses to grow and to thrive. “A new partnership and an investment in Oxford will see the Crown Estate invest in developing vital workspace, labs and facilities to support growth companies.” Richard O’Boyle, executive director at Pioneer Group, said: “Our joint effort will not only transform the former Debenhams site into a leading life sciences hub but also deliver extensive developments throughout Oxford. This collaboration will create a central nexus for scientific innovation, supported by our accelerator and launch programmes aimed at empowering science entrepreneurs. “With the UK’s largest network of life science experts, cutting-edge labs, and robust support systems, we are poised to redefine industry standards and foster a vibrant scientific community. This is just the beginning of a partnership that will enhance innovation across our existing locations and beyond.” Harry Pickering, portfolio director and head of UK real estate investment, said: “The Debenhams site is an example of our investment thesis and expertise to regenerate underutilised developments in science-related locations, in and out of the Golden Triangle.” Savills advised DTZ Investors. Photo from Savills