The catalyst of capital

Greater Manchester has cultivated a formidable and expanding reputation as a global epicentre for science, technology, and innovation. Its historical contributions are profound, ranging from birthing the Industrial Revolution and inventing the world's first computer, to its contemporary leadership in graphene research. This consistent presence at the forefront of technological advancement uniquely positions the region to harness its innovations and propel its growth trajectory with strategic intent.

This strategic ambition is tangibly reflected in the significant physical expansion of its knowledge economy. Over the past 15 years, Manchester has seen the delivery of a substantial 3.01 million sq. ft. of new education and research facilities. This growth has notably accelerated, with 2.12 million sq. ft. – over two-thirds of the total – completed since the Corridor Spatial Strategy's endorsement in 2017. Despite prevailing economic headwinds, current activity remains robust: 458,000 sq. ft. of education, research, and health services floorspace is under construction across two key schemes. This figure closely aligns with the historical average of 499,793 sq. ft. for this sector, underscoring sustained investment and demand.

This sustained investment and strategic intent continues to drive the integrated innovation district within the Oxford Road Corridor. This district brings together cutting-edge laboratories, professional office spaces, and student living to stimulate economic growth, create jobs, and foster unparalleled collaboration. Among the major new starts, the first two phases of development on Upper Brook Street are significant in that they will deliver 217,000 sq. ft. of purpose-built technical real estate through Kadans, alongside a 737-student bedroom scheme by McClaren.  Future phases will see an additional 490,000 sq. ft. of research and innovation space alongside further PBSA.

Complementing this is the comprehensive upgrade of Greenheys due to complete in 2026, located within Manchester Science Park. This significant project is poised to become the new home for UK Biobank, signifying a major boost for UK health research. By centralising its operations in this state-of-the-art facility within the Corridor, UK Biobank will accelerate discoveries by leveraging data, fostering collaboration with nearby universities and industry, and strengthen Manchester's role as a global life science hub.

This attractiveness is further underscored by significant commercial commitments. Among the key moves for recently completed space, the £42 million, 125,000 sq. ft. CityLabs 4.0 is set to be occupied by Convatec from 2027. Notably, it is part of Convatec's decision to invest £500 million in the region, including their new state-of-the-art R&D hub within CityLabs 4.0.  This represents a strategic choice for Manchester over other European locations.  It will house their cutting-edge analytical R&D capabilities, regulatory functions, and digital health innovation.

To anticipate future trends and build upon this momentum, our analysis highlights the global health and life sciences sector as a critical area for strategic investment. This sector is uniquely positioned to fuel opportunities for future inclusive growth across all areas covered in our Crane Survey, acting as a powerful economic and broader productivity driver for the City Region as a whole. Its dynamic nature and far-reaching impact provide a compelling narrative and thematic foundation for understanding Manchester's ongoing development, distinct from other sectors explored elsewhere in this report.

The market opportunity

The life sciences industry is experiencing exponential growth globally, propelled by an ageing global population, the ambitions to tackle more chronic diseases, and transformative technological advancements, like artificial intelligence and gene editing.  Globally, the industry generated approximately £1.44 trillion in total sales in 2024 and is expected to triple by 2034.

This expansion necessitates specialised infrastructure and facilities, making it an exceptionally attractive target for capital seeking high-impact, long-term opportunities. It is estimated that alternative properties such as life sciences and health care facilities (in addition to data centres, cell towers, self-storage facilities, single family rentals, senior housing, and student housing) could account for nearly 70 per cent of industry portfolios by 2034 up from 40 per cent today.  However, despite the UK's robust research and life science base of talent and innovation, there have been mixed fortunes on attracting capital investment to fully capitalise on this global growth.  

To navigate sectoral investment and delivery challenges, GM has maintained its long-term commitment to building the strength of its academic and innovation ecosystem that extends across the Oxford Road Corridor and serves as a critical economic driver for the North West. The market activity reflects that too. Regarding the planning pipeline, there is a further 2.1 million sq. ft. approved for construction or set out in Masterplans actively seeking funding, potentially creating over 12,000 jobs.

Unlocking this amount of development will make a substantial contribution to reinvigorating long-term growth in this sector in the UK.  Attracting additional capital beyond site owners and developers is crucial.  Greater Manchester is well positioned as one of the top-performing life sciences locations in the UK outside the "Golden Triangle" (London-Oxford-Cambridge), with significant momentum driven by health innovation, strong institutional backing, and rapid growth in private investment. 

As such, the funding landscape for UK life sciences is undergoing a strategic shift, aiming to bridge funding gaps for scaling companies and transition from a "testbed" status to a global commercialisation leader. This requires a diverse mix of capital sources; a combination of public, institutional, private equity and corporate structures.

1. Public funding and regional support
Manchester stands out as a primary recipient of "Levelling Up" funding and government investment aimed at decentralising the life sciences sector.  While the South East still delivers more in terms of total volume, Manchester is heavily supported by government initiatives to act as a "Northern Arc" counterbalance to the South.

For example, in October 2025, Greater Manchester was awarded an additional £50 million to support local innovation priorities, including health-related projects.  Broader government initiatives include over £2 billion in new funding for the sector, such as the £520 million Life Sciences Innovative Manufacturing Fund (LSIMF).  The British Business Bank (BBB) acts as a cornerstone investor to attract further private capital.   Similarly, the fit-out of UK Biobank and construction of the revamped Greenheys Building has been backed by £127.6 million from UK Research and Innovation, making the move from the current Stockport facility to Manchester Science Park a reality. It is due to become operational during 2026.

Local and regional government support remains essential, exemplified by the pioneering £1 billion GM Good Growth Fund.  A patient equity commitment of £20 million has been made towards the continued expansion of the emerging innovation hub, Sister. This investment is specifically directed towards the redevelopment of former University of Manchester buildings and will help to deliver 500,000 sq. ft. of new office and lab space for advanced manufacturing and materials, life sciences, low carbon and green technology, and the digital and technology sectors. This includes cutting-edge work in areas such as AI-driven drug discovery, advanced robotics, and sustainable materials development, attracting firms like Sustainable Ventures as initial occupiers. This investment will create 4,000 direct and indirect jobs through the next phase of development at Sister.

In addition, the University of Salford’s £24 million state-of-the-art acoustics research facility was funded in part by the GMCA and part of the £2.5 billion Crescent Salford masterplan.  This demonstrates how, despite the sector’s economic challenges, long-term strategic planning from universities supported by new public sector-led funding sources can help to drive the region’s knowledge base.  In the current market, public sector funding is essential, and schemes worthy of such funding possess certain attributes: scale, integration within wider strategic innovation clusters, location in the regional centre, and the ability to meet specific needs.

2. Institutions (Universities and NHS)
Manchester's institutional backing has been critical to its success to date. The Oxford Road Corridor is a dense hub of research excellence, anchored by the University of Manchester, a top-tier research institution, and benefiting from the Manchester University NHS Foundation Trust (MFT). The area is a leader in advanced cell and gene therapies for cancer, as well as digital health and informatics.

Collaborations are robust, with the presence of the UK Biobank soon to provide additional world-leading research infrastructure. Institutional investors, including Defined Contribution (DC) pension funds, are a key focus for unlocking domestic capital, with initiatives like the Long-Term Investment for Technology and Science (LIFTS) aiming to mobilise over £1 billion, with approximately 20% earmarked for life sciences. Similarly, the British Growth Partnership, comprising three major pension funds – Aegon UK, NatWest Cushon, and M&G – is building an initial £200 million investment fund aimed at supporting UK science and technology firms across the UK.

Higher education institutions are central to this ambition to secure ongoing investment. Manchester Metropolitan University will publish its masterplan strategy in 2026, while the University of Manchester's 'Strategy to 2035' (published October 2025) explicitly commits to:

"focus[ing] our strengths on the areas where Manchester can make the greatest difference: for example advancing health and life sciences to drive inclusive growth and turning world-changing discoveries, from materials to digital technologies, into practical impact.”

3. Private Equity (PE) and Venture Capital (VC)
Between 2017-2023, UK Pharmaceutical R&D investment underperformed against global trends, with a slowdown starting in 2020 when UK growth in the sector fell to 1.9 per cent per year, behind the global average of 6.6 per cent annual growth.  Life sciences foreign direct inward investment into the UK life sciences was around 58 per cent lower in 2023 (£795 million) than in 2017 (£1,893 million) and fell from a high of second in 2017 to seventh in 2023.   The picture has been steadily improving since then.  In 2024, the UK saw an increase in private VC spending of £2.25 billion in biotech-related funding, and has broadly maintained that private investment rate in Q1-Q3 2025.  

Manchester is increasingly attracting investors interested in high-growth, high-value sectors, with significant activity in biotech, diagnostics, and AI-driven health solutions.  The region was selected as one of three areas to pilot the Innovation Accelerator programme, which has delivered over £140 million in private investment.  Private capital, including Private Equity (‘PE’) and Venture Capital (‘VC’), is a primary driver for growth-stage scaling. While still behind London/Cambridge, Manchester's performance in attracting this capital is growing rapidly. The GM&C Life Sciences Fund, managed by Catapult Ventures, has also been instrumental in backing early-stage firms, leveraging over £100m in private sector co-investment.

While a persistent investment risk premium gap exists between London and Manchester, the region is one of the strongest performers for attracting foreign direct investment outside London. Specialised PE firms (e.g., GHO Capital, Synova Capital) and VC funds are actively investing in biotech and medtech.

Source: https://biotechfinance.org/

4. Corporates and Commercial Infrastructure
Manchester demonstrates strong and expanding performance in attracting corporate investment. Key hubs like Manchester Science Parks and Citylabs (1.0, 2.0, and 3.0) provide dedicated, high-quality lab space that attracts major corporate players. Companies like QIAGEN, and the presence of IQVIA in Wythenshawe highlight a strong industrial base.   

Furthermore, corporate investors, such as global pharmaceutical companies like BioNTech, AstraZeneca, and Moderna, are significantly increasing their UK presence. This is through R&D hubs and manufacturing, exemplified by BioNTech's £1 billion 10-year investment announced in May 2025. However, much of this is in the “Golden Triangle”.  

This highlights how the R&D sector remains intensely competitive. Within the UK alone, rival regions for investment like London and the Ox-Cam Arc highlight the imperative for GM to articulate a clear, joined-up strategy. This approach must leverage combined strengths to achieve positive differentiation, enabling the region to secure broader funding and drive growth.  

Manchester offers a competitive cost base compared to the "Golden Triangle," making it attractive for scale-ups and companies needing to expand production, particularly in diagnostics and clinical research. This multi-faceted approach to funding and capital is vital for unlocking the sector's full potential across the UK.

Summary

Recent successes, including the expansion of the Oxford Road Corridor, the continued development and occupation of specialist world-class research hubs, private investment streams recovering, and funding allocation via the GM Good Growth Fund, provide a strong foundation.

The strength of Manchester’s deeply established R&D strategy, its high productivity rates, the demonstrable pipeline of investable proposals and the strength of alignment between regional and local authorities present a compelling proposition to put it among the very top locations in the UK to attract such investment over the coming years.

Challenges do remain.  While inflationary pressures on construction costs have affected all sectors, this impact is potentially more acute when delivering new R&D facilities.  The lengthy lead-in time to occupation compared to conventional commercial floorspace highlights the bespoke nature of the fit-out, reflected in Convatec’s move to Citylabs 4.0.

The critical question for the region is how it can stay ahead of its competitors by leveraging all forms of capital, and how this leadership translates into tangible benefits for its residents, businesses, and the wider economy. By aligning its strengths with strategic investments and collaborative partnerships, GM can unlock the full potential of its life sciences sector, driving a new era of innovation and growth.

This also positions life sciences as a key component within a broader strategy for capital diversification across multiple sectors. Success in this area will bring success in other areas, driving demand for new homes, investment in linked industries, and supporting local expenditure.