Memorandum submitted by Legacy Plc
1. EXECUTIVE
SUMMARY
1.1 The Millennium Dome ("Dome")
under Legacy PLC's ("Legacy") plans would become home
to a large cluster of knowledge based businesses. It would, in
effect, be the national incubator for technology businesses.
1.2 The cluster would be the largest of
its kind in the UK, if not Europe, and would help to keep Britain
at the forefront of technological development. It would also mark
this part of London out as the centre for innovation and enterprise.
1.3 Legacy's scheme is demand driven. There
is a chronic shortage of suitable, flexible space and facilities
for small, growing technology companies, which are acknowledged
to be so vital to Britain's economic future.
1.4. The cluster would comprise:
— Large hi-tech companies including
BT, 3Com, Sun and NTL;
— Academic institutions including Imperial
College and the Open University, and their spin-out companies;
— A large number of small, hi-growth
companies;
— Support services for the community
of small companies, including professional services, consultancy,
advice and capital; and
— Ancillary leisure and retail facilities
to service the community, promote interaction between occupiers
and encourage locals to visit the Dome which will be freely accessible
to the public at all times.
1.5 Legacy has identified four segments
of the market which will be accommodated initially; biotechnology,
e-commerce, telecoms and wireless applications.
1.6 Legacy's scheme would respect the integrity
of the Dome as an architectural icon and would not seek to alter
the structure. The accommodation for the new community inside
would be flexible and adaptable and since it is under a weather
proof cover, can be arranged in an inspirational environment.
The total floor area of 1 million sq ft is approximately the same
as the Canary Wharf tower, but it is all on one floor allowing
optimal floor plate design and promoting interaction between occupants
which is so much a part of Legacy's plans.
1.7 The financial plans place no reliance
on public funds and are financed entirely by major commercial
concerns. Legacy's plans are profitable and financible on a phased
basis and will be underpinned by long-term commitments from the
technology partners and others.
1.8 One of the key benefits of Legacy's
scheme is the regeneration effect it will have on the Thames Gateway
region. Legacy's economic study shows some 14,000 high quality
jobs in the industries of the future being created under the Legacy
scheme. The multiplier effect on the surrounding region should
be significant in addition to the opportunities directly associated
with the new Dome. Legacy places great emphasis on education and
training and has an annual budget of some £250,000 allocated
for that purpose.
1.9 Britain's economic future rests on being
competitive in the new industries of the 21st century. Britain
has a tradition of innovation but has fallen behind other countries,
most notably the US, in commercialising its intellectual capital.
This is an opportunity that Britain can ill-afford to miss.
1.10 The Legacy team has the experience
in management, finance and the business of managing flexible space
and the vision to provide the Dome with a positive future associated
with enterprise, innovation and opportunity, which would be the
most appropriate legacy for the nation.
2. THE LEGACY
PROPOSAL FOR
THE FUTURE
USE OF
THE DOME
AND ITS
SURROUNDS
The Concept
"In an era of globalisation and the growth
of the Internet, a firm's location still matters. There is strong
empirical support that the returns to R&D, and the spillover
of knowledge between firms and research institutes are enhanced
by co-location. The networking and interaction between firms and
research institutes, and the clustering of specialist service
providers of legal and financial advice and venture capital, provide
a powerful stimulus to productivity growth."
Source: Pre-Budget report, HM Treasury,
November 1999.
2.1 The Dome under Legacy's plans would
become home to a large cluster of knowledge based businesses.
A cluster is a loose grouping of organisations that have similar
interests and that benefit from being situated close to one another.
An example of a cluster could be the City of London where banks,
fund managers, accountants, solicitors, consultants, executive
search companies and financial PR companies all operate within
roughly the same sector and benefit from being situated near to
each other. The City could be called a cluster of finance based
businesses.
2.2 According to Legacy's research, affordable,
flexible space and facilities for this vital sector of the economy
are in great demand but very limited supply in central and greater
London. This site provides the ideal combination of accessibility,
and proximity to Colleges, the City and the West End and a structure
that would offer the maximum flexibility and scalability for occupiers.
It would mark this part of London out as the centre for innovation
and enterprise in much the same way as the City is the financial
district, Westminster the political centre and the West End is
the media and advertising district.
2.3 The population of the Dome (ie the cluster)
under Legacy's plans would consist of:
— Large hi-tech companies from the
biotech, telecoms, networks, hardware and software fields, representing
Legacy's technology partners;
— Academic research organisations such
as Imperial College and the Knowledge Media Institute from the
Open University;
— A large number of early stage technology
companies, some of which will be "spinouts" from academic
research institutes and financial incubators;
— Professional services organisations
such as accountants, lawyers, patent agents, venture capitalists,
government support agencies for small businesses and other support
services such as e-commerce fulfilment; and
— Ancillary leisure and retail facilities
to service the occupants, to foster their interaction, and to
encourage the public to visit the Dome as a centre of technological
innovation.
2.4 Conference space would also be provided
for use by the occupants and others for product launches, showcases
and exhibitions. This would also play a part in Legacy's commitment
to training and involving the public in the understanding of science.
2.5 The cluster would be the largest of
its kind in the UK (if not Europe) and would help to keep Britain
at the forefront of technological development in such fields as
biotechnology, telecoms, information technology and other related
areas such as e-commerce and wireless technologies. However, it
should be emphasised that this would not merely be for "dot.com"
companies and our financial projections have never placed a great
reliance upon attracting a large proportion of these companies.
However, our projections do state that the Legacy proposal, which
would rely largely upon rental income, would be profitable even
on a phased basis.
THE NEED
FOR PARTNERSHIP
AND SUPPORT
2.6 Having studied other successful clusters
of growing technology businesses in other countries, Legacy sees
the role of academic partners as key. Professor Michael Porter
at Harvard University identified the benefits of interaction between
commerce and research[7]
in respect of the enormous productivity of the Boston area, the
Bay area of San Francisco and Silicon Valley.
2.7 Legacy is pleased to have the endorsement
of:
— Imperial College of Science, Technology
and Medicine ("Imperial").
— The Knowledge Media Institute of
the Open University ("KMI").
— The London Business School ("LBS").
— The London BioScience Innovation
Centre of the Royal Veterinary College ("LBIC").
2.8 All of these institutions would use
the Dome for their "spinout" companies and potentially
for their own incubator space. KMI has expressed an interest in
having a London showcase, similar to the one they have in Milton
Keynes, which would enhance the Dome's role in the public understanding
of science.
2.9 In the biotechnology sector, there is
an initiative to encourage a cluster of such businesses in the
London area as a result of a report undertaken by Lord Sainsbury.
This report identified London as a centre which had all the necessary
ingredients for a successful cluster of biotechnology businesses.
London's problem is to find flexible space on any scale. Legacy
is pleased to have the support of The Bioindustry Association
in the context of the Dome providing the venue for such a cluster.
2.10 Legacy has also had endorsement from
leading venture capitalists and financiers in this field including:
— Dr Chris Evans, CBE Chairman of Merlin
Biosciences.
— Dr Stephen Parker, Director of Apax
Partners & Co.
— Christopher Collins, Managing Director
of the Life Sciences Group at WestLB Panmure.
TECHNOLOGY INFRASTRUCTURE
2.11 Legacy's technology partners would
not only wish to provide the technology platform within the Dome,
but would also wish to have a physical presence in such an environment.
They would intend to showcase prototype and newly launched products,
locate specialised R&D functions, and incubate ventures they
are developing or have invested in. Legacy's technology partners
include:
2.12 The internal network for the Dome would
allow the occupants to communicate electronically and share information
with each other and would, where appropriate, make use of wireless
technology.
THE ARCHITECTURAL
VISION
2.13 The new architecture proposed by Legacy
would complement the stunning image of the Dome itself. The internal
layout would promote interaction between the occupiers. Leisure
facilities such as bars, restaurants, a health and fitness club
and a hotel would provide the ideal scope for the occupants to
interact. This interaction between the different organisations
could help to generate new and valuable areas of commerce. In
the Cambridge area near Boston, Massachusetts, a particular restaurant,
"Legal Seafoods", is famous for its role as the meeting
place for those working locally in the many biotechnology companies
located there.
3. THE IMPACT
OF THE
DOME
The Community Impact
3.1 Legacy would seek to leverage the technology
infrastructure and expertise that would be located at the Dome
for the benefit of the local community. One initiative would be
to link all the local schools, hospitals and local government
facilities via an Internet service provider to be located at the
Dome. It would be an inspiring and free place for schoolchildren
to visit as they could learn about the Internet's developing applications
and contribute to the content on the Greenwich portal while hospitals,
GPs' surgeries and local government departments could for example,
share information more easily, in a secure environment.
3.2 Educational and training programmes
would be introduced at the Dome by taking forward the initiatives
currently at the Learning Experience Centre. There would also
be local education initiatives and new "virtual" initiatives
run online in conjunction with Legacy's academic occupants, such
as the Open University. These initiatives would assist with improving
the local skill base and would have a role in the public understanding
of science.
3.3 Environmental improvements, which would
have a positive impact upon the local community, could be made
if the Legacy bid wins. Occupancy of the Dome would be stable
at approximately 9,000 and so there would be a constant level
of use that is lower than current levels. There are excellent
public transport links and Legacy would seek to encourage use
of the Jubilee Line, buses and also look seriously at how a riverbus
service could be provided. Legacy would also create an environmental
monitoring centre to ensure that all activity in the area associated
with the Dome was environmentally sustainable. This would be run
in conjunction with local schools and other groups.
THE ECONOMIC
IMPACT
3.4 The powerful potential local economic
impact of such an initiative should not be underestimated. Local
wealth creation and opportunities for training and employment
generated by the proposals would, Legacy believes, be unrivalled
by any other use of the Dome. Economists at PricewaterhouseCoopers
have forecast that Legacy's plans would create 14,000 jobs on
the site (of which 86 per cent would be additional at a local
level) and have a significant impact on the prosperity of the
Thames Gateway region. This would include increased sustained
spending in the local area. Legacy's proposals would also be in
accordance with the Greenwich masterplan.
3.5 To remain competitive, the UK must place
itself in the forefront of these new industries and technologies.
Since 1997, the Government has recognised how important this is
through wide ranging programmes to enhance the business environment
and to facilitate new enterprises. The most recent measures promoted
investment in IT infrastructure, corporate venturing, regional
venture capital funds and employee share ownership. They were
introduced by the Chancellor of the Exchequer in his March 2000
Budget and they are all very pertinent to Legacy's plans.
3.6 The Dome was built to mark Britain moving
from one era to the next. There can therefore be no more meaningful
gesture than to introduce industries of the future, within the
Dome. With its maritime, armaments, and cable industries complementing
its status as the world longitudinal reference for over a century,
Greenwich is the most symbolic British site for Legacy's plans.
3.7 However, the real benefit would be the
wealth that the hundreds of companies and enterprises flourishing
within the Dome and the surrounding region would generate. Whilst
Britain has 80 incubators (registered with the British Incubation
Association), none is on the scale proposed by Legacy. The Dome
represents a wonderful opportunity to create a cluster of knowledge
based businesses, which would have an impact, not just at a local
level, but also nationally and internationally.
3.8 This concept is already in existence
in other countries such as the USA, France, Germany and Israel.
Britain can ill-afford to miss out on such an opportunity.
4. PUBLIC SUPPORT
4.1 It would be worth noting that there
is substantial public support for the concept that Legacy is proposing.
A MORI poll undertaken in February 2000 produced the following
results:
— 66 per cent of all respondents thought
that this country needs a home for Britain's young creative companies;
— 81 per cent agreed that this country
needs a focus to take advantage of opportunities in new technologies;
and
— 59 per cent agreed that the Dome
would be a suitable place for a new technology campus to provide
a boost for young creative companies.
5. THE LEGACY
TEAM
5.1 The Legacy team has the necessary expertise
and experience in property, regeneration, finance and management
to create a successful permanent home for the emerging technologies
of the 21st century, which would be a fitting legacy for the nation.
5.2 Legacy is founded on the accumulated
experience of over two decades of either directly operating, or
investing in, managed and serviced business accommodation and
the regeneration of depressed urban environments.
The Board
Chairman—Sir Christopher Benson FRICS
5.3 As Chairman of the London Docklands
Development Corporation, he was instrumental in the development
of Canary Wharf. He was also previously Managing Director and
later Chairman of the property giant MEPC, Chairman of The Boots
Company, Royal and Sun Alliance, Allbright and Wilson and Costain
plc. He is currently Chairman of Bradford Particle Design, an
embryo techno-pharmaceutical company originating within Bradford
University, Chairman of Mi29, embryo software designers of bespoke
security architecture, Chairman of international property advisors
GVA Grimley and a member of the advisory board at corporate financial
advisers, Hawkpoint partners.
Chief Executive—Robert Bourne FCA
5.4 Robert was co-founder of Local London
Group plc which was a successful operator of business space for
the smaller business in London. The company was floated on the
London Stock Exchange and was the subject of a successful take-over
bid in 1989 valuing the company at £110 million. In 1990
he became joint chief executive of The Ex-Lands PLC, a fully listed
property company. In 1997 he left the board of Ex-lands PLC when
it merged with Marylebone Warwick Balfour PLC. Robert remains
Chairman of Clubhaus PLC, which is listed on the London Stock
Exchange and is a fast expanding leisure company specialising
in golf and health and fitness clubs.
Company Secretary and Non-Executive Director—Alan
Banes
5.5 Alan is a partner of solicitors Howard
Kennedy and heads up the company commercial department. He has
experience in corporate finance and substantial property transactions.
Deputy Chairman—Tom Quinn
5.6 Tom is a consultant in investment banking.
He was a partner of W. Greenwell & Co., Stockbrokers between
1967 and 1986 when he moved to Samuel Montagu as a Director. Between
1987 and 1992 he was director of BZW after which he moved to Hambros
Bank plc where he was a Director until 1995. In 1995 he set up
Quinn Consultancy, providing a range of advice and consultancy
on financial matters.
Finance Director—John Precious FCA, FCT
5.7 John was Group Finance Director of Wellcome,
until 1994, and non-executive Chairman of the Cambridge based
Celsis International plc from its floatation on the London Stock
Exchange in July 1993 until 1997. He currently has a number of
non-executive positions including Biocom SA, a Paris based automated
analysis company and Manor House Group, a venture management company
where he is Chairman.
Commercial Director—Hugh Rosen
5.8 Hugh has spent most of his business
life working in the property sector. Between 1982 and 1986 he
was involved in mining and property in South Africa. In 1986,
he managed the property division of the Overseas Commodities Group,
London, prior to the business being acquired by Local London Group
in 1987. Since that time, he has been involved with Robert Bourne
in his various business activities.
Business Development Director—Bruce Walker
5.9 Bruce has a background in corporate
finance with an emphasis on property and smaller companies. He
was with Johnson Fry from 1990 until 1997 when he joined merchant
bank Brown Shipley. From the corporate finance team at Brown Shipley,
Bruce was promoted to central management where he was responsible
for the bank's acquisitions, their equity investments in smaller
companies and the e-commerce strategy for the group.
Resources Director—Derek Pearce
5.10 Derek was Managing Director of Tioxide
UK Ltd, a capital intensive chemical manufacturing company. He
was appointed Human Resources Director of the Tioxide Group plc—where
he also held a worldwide remit for environmental improvements.
Between 1993 and 1996 he was Chief Executive of the Leeds Training
and Enterprise Council. He is currently a Non-Executive Director
of Celsis International plc and a Trustee of Raleigh International,
a youth charity.
7 Clusters and the New Economics of Competition, Michael
E Porter, Harvard Business Review, Nov-Dec 1998. Back
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