Railpen celebrates commitment to Cambridge
We represent the long-term interests of more than 350,000 members – individuals who have dedicated their careers to the UK’s transport infrastructure and whose retirements we are committed to securing, writes Matthew Howard, Head of Property Asset Management at Railpen.
Our mandate is to invest with purpose, and not merely to manage and protect. By aligning our long-term investment horizons with the UK’s most critical growth sectors, we are positioning Railpen as a vital catalyst for the country’s continuing economic development.
For nearly a decade, Railpen has been deeply embedded in the UK’s most dynamic markets, most notably within the ‘Golden Triangle’ of London, Oxford and Cambridge. Our strategy is built on a fundamental belief: that the most resilient returns are generated by investing in the places, businesses and infrastructure that solve global challenges. This vision is best exemplified by our activity in Cambridge, a city that has become the focus of our real estate and innovation strategy.
A long-term vision for growth
Railpen’s purpose is to secure value over decades, which aligns perfectly with the trajectory of knowledge-led cities. Cambridge is a global beacon of breakthroughs, from the discovery of the structure of DNA to current frontiers in artificial intelligence, quantum computing and life sciences.
We recognise that for the UK to compete on a global stage, it is essential to secure high-quality, sustainable infrastructure that fosters collaboration. To this end, we are creating an integrated ‘Innovation Cluster’ in Cambridge. This portfolio currently comprises 11 assets totalling 1.9 million square feet of market-defining space. These are not ecosystems designed to facilitate the transition from academic research to commercial success.
The Beehive: a milestone for UK innovation
The most significant recent milestone in this journey is the securing of planning consent for Beehive – a project that represents one of the most ambitious laboratory and innovation park developments in the UK, comprising one million sq ft of world-class innovation that is a testament to Railpen’s ability to deliver projects of national significance.
Upon completion, the site will support an estimated 6,500 full-time roles, a staggering increase from the 855 currently supported by the retail park that currently exists on the site. Crucially, more than 2,000 of these will be entry-to-mid-level positions, supported by an on-site careers academy to ensure that the benefits of the innovation economy are felt across the local community.
Economically, the Beehive is projected to generate an additional £600 million in annual Gross Value Added (GVA), bringing the total annual GVA supported by the site to approximately £655 million. Furthermore, it is estimated to contribute between £180 million and £240 million in annual tax revenues.
While the Beehive is a flagship development, it is part of a much broader, cohesive strategy. Our Innovation Cluster includes several other major schemes that are currently redefining the Cambridge skyline.
Among these is Botanic Place, a 325,000 sq ft, global-standard headquarters development scheduled for completion in Q1 2028. The project has been designed to meet the highest sustainability criteria, recently obtaining a BREEAM score of 100.54%, the highest score given to an office development worldwide. It will provide the Grade A office space that international firms require to establish a permanent presence in the UK.
Similarly, Mill Yard, a unique 180,000 sq ft mixed-use campus set to complete in Q1 2027, and our recently consented 112,000 sq ft office building at 230 Newmarket Road, demonstrate the depth of our commitment to providing a variety of spaces for businesses at every stage of their growth cycle.
A partner in prosperity, locally and nationally
The UK Government has been vocal about its growth agenda, seeking to boost productivity and ensure the benefits of economic development are distributed across the regions. Railpen is very much aligned with this mission. By investing in the Oxford-Cambridge Growth Corridor, we are helping to build the infrastructure needed for the UK to compete with global hubs like Boston or Silicon Valley in the US.
Railpen’s commitment goes beyond its real assets. We have developed highly effective partnerships with a wide range of stakeholders in Cambridge, from the council to local groups, the universities and organisations facilitating growth and innovation. The Glasshouse, a joint initiative with Innovate Cambridge that serves as a gateway for company founders and investors to access the city’s thriving innovation ecosystem, is a prime of example of this.
We are also a direct investor in innovative, Cambridge-based businesses, such as CMR Surgical. This unique, integrated approach has provided us with a unique perspective on what the city and occupiers need and want, as well as how and where to make the most significant contribution to the city’s economic, social and environmental growth.
Looking ahead
In the coming months, we look forward to sharing further details on our specific schemes and the progress of our Innovation Cluster. We believe that long-term, sustainable investment in knowledge hubs will be a key driver of national resilience. Railpen is proud to play a major part in building that future, responsibly, strategically and with a view towards achieving a lasting positive impact for our members and the country at large.
