Member Article

AstraZeneca complete sale of Alderley Park research site

Pharmaceutical giant AstraZeneca has sold its Alderley Park site in Cheshire to Manchester Science Parks (MSP), a Greater Manchester based public-private partnership and science park operator.

Manchester Science Parks’ shareholders are Bruntwood Ltd, The University of Manchester, Manchester Metropolitan University, and Manchester and Salford City councils.

Bruntwood Ltd, the majority shareholder of MSP, is a North West-based, family-run and owned business with a property portfolio across Manchester, Liverpool, Leeds and Birmingham.

The acquisition is funded by Bruntwood, MSP and Cheshire East Council, with Bruntwood as the majority funder. The financial terms of the transaction have not been disclosed.

The sale is part of AstraZeneca’s plan, set out in March 2013, to relocate its R&D activity from Alderley Park to a new global R&D centre and corporate headquarters in Cambridge, in 2016.

Pascal Soriot, Chief Executive Officer, AstraZeneca, said: “We believe that the sale of the site to Manchester Science Parks is the responsible and sustainable choice for the future of Alderley Park.

“The new owner is committed to building on AstraZeneca’s life science legacy at the site and ensuring it remains a centre of biotechnology innovation in the North West of England. It will lead to future growth and offer significant opportunities for new jobs to be created.”

Chancellor of the Exchequer, Rt Hon George Osborne MP, said: “I am delighted that the future of Alderley Park has been secured through today’s deal with Manchester Science Parks.

“As the local MP, and as Chancellor, I’m fighting hard for the future of this site. So I am very pleased that Alderley Park, with its rich heritage of innovation, will now continue to operate at the centre of the UK’s life sciences’ industry.

“This deal ensures that new businesses are able to build on the site’s history to deliver exciting new opportunities and more jobs for the North West which in turn means economic security and a brighter future for all those involved. Life Sciences are one of the UK’s leading sectors and by backing places like Alderley Park, we are backing the industries of the future.”

Chris Oglesby, Chairman of MSP and Chief Executive of MSP majority shareholder, Bruntwood, said: “We are delighted to have been entrusted with securing the future of Alderley Park as a bioscience facility of world class scale and quality. We are committed to developing a bioscience business cluster of international importance on the site, making it a flagship location of its kind for the North of England and the UK.”

AstraZeneca will take pre-tax impairment charges of $275 million to non-core R&D expense in the first quarter of 2014. This forms part of the costs associated with the footprint changes announced in March 2013.

AstraZeneca expects to complete the sale by end of March 2014 and will remain a tenant on the site. Around 700 staff from AstraZeneca will remain at Alderley Park in non-R&D roles following the transition to Cambridge.

The handover of the site will be phased over a three year period, with the full exit of AstraZeneca R&D staff to take place in line with the completion of the company’s new facility in Cambridge.

Reactions to the sale in the North West have been positive.

Neil Murray, CEO of early stage drug research company Redx Pharma, which already has over 50 staff based at Alderley Park within its anti-infectives subsidiary, said: “We’re delighted with this outcome because the buyer has an excellent track record not just of running science parks, but also of maximising their potential. The North West as a whole is a hive of activity for life sciences and Alderley Park is a powerful building block for future growth.”

He also praised Astrazeneca for the consideration it has given to securing a new future for Alderley Park. “Almost uniquely in our experience, Astrazeneca has kept a keen eye on the legacy of their time in the North West.

“Notwithstanding the obvious disappointment that its R&D operations have been consolidated elsewhere, we couldn’t speak highly enough of the efforts the company has made to support a coherent future for life sciences in the North West.”

Ian Rowland, the northern head of the Tax Innovation Group at accountancy firm Grant Thornton, commented: “Alderley Park is a world class research and development facility and there’s a lot of relief that the future of this important asset has been secured. The transition of the site from an Astrazeneca base to an integrated science park is exciting in prospect. No doubt there will be significant synergies for all concerned. Given its sheer scale, Alderley Park will be a key driver for helping life science businesses get established in the North West, and also attract new inward investment to the region.”

This was posted in Bdaily's Members' News section by Simon Malia .