ID Manchester
CLIENT CONTEXT
The University of Manchester sought to transform its former North Campus into ID Manchester: a nationally significant innovation district. The challenge was not simply development, but how to structure a scheme that was viable, financeable and resilient to risk, while protecting the University’s long term interests as landowner and civic institution.
PROCESS
Start Advisory supported the University and its consultancy team through the competitive bidding process and into the early life of the joint venture. Commercial rigour, and the insight we brought from our direct experience as developers, was central to the guidance we gave and value we provided the client.
During the bidding stage, we tested scheme viability and risk exposure across competing proposals, testing financial modelling to compare phasing, delivery responsibility and downside scenarios. This analysis was used directly to inform bid evaluation and partner selection, in detailed workshops throughout the procurement phase. We also co-created a new model for commercial incubation of University start-ups and collaboration with private sector clients. This was designed to be taken up by the winning bidder to help meet their obligations to support innovation.
Following appointment of the preferred partner, we continued to advise the University as a representative on the Joint Venture Board and through briefings and workshops with senior colleagues. Viability and commercial analysis were used to frame decisions on sequencing, governance and capital commitment as the scheme moved from procurement into delivery.
RESULTS
The University was able to negotiate a joint venture structure that retained strategic influence while securing delivery experience from a development partner. Decisions on structure and phasing were taken with a clear line of sight to financial resilience, ensuring that delivery risk was known and sat where it could be best managed, with the aim to protect long term value. The University also built on the incubation model to create a new department for spinouts and commercialisation.
ID Manchester is now called Sister and is progressing with a new workspace available in refurbished buildings on site as well as new build office schemes in the pipeline.
“The University’s estates team had overseen a significant redevelopment programme across campus by the time we got to the point where we could look at strategic release of ID Manchester for redevelopment. We knew that this offered the University a generational opportunity to create the right environment to support our strategic goals to support innovation, increase or global influence and continue our commitment to civil engagement.
Start Advisory helped us turn those high level ambitions into a practical and effective plan that could leverage the potential of the assets at ID Manchester to deliver our goals. Their insight into how successful regeneration schemes work, (gained from direct involvement as developer in some of the UKs most highly regarded projects) and how to structure a proposition to the market, meant that we were able to offer an exciting vision to potential investment partners that met our own needs and was grounded in economic reality. The team supported us through the partner bidding phase and continued to advise the University team through the initial two year set up of the project.”
– Patrick Hackett, Registrar, University of Manchester
