Liverpool’s Knowledge Quarter is a 450-acre Mayoral Development Zone in heart of the City Centre. It is a hub for global research, and houses a cluster of bio-medical, research and science institutions as well as Liverpool University, Liverpool University Teaching Hospital and Liverpool John Moores University. In addition to the £600m invested since 2000, a further £2 billion of investment is being undertaken in the Knowledge Quarter over the coming years. This will see an expansion of the Royal Liverpool University Hospital through a £25 million Life Sciences Centre, and the £118 million Clatterbridge Cancer Treatment Centre, among many others. The Knowledge Quarter seeks to boost local employment, attract global talent, and encourage greater post-graduate retention from local Universities.

A 30-acre site at the eastern gateway of the Knowledge Quarter has been earmarked for a £1 billion expansion project, which will comprise 1.8m sq ft of life sciences, technology and education space; this is estimated to create more than 10,000 new jobs. Development is already underway, and notable buildings include the Spine building and the Rutherford Cancer Centre.

The 160,000 sq ft Spine building is the flagship development for Paddington Village and is the new HQ for the Royal College of Physicians, and is one of the first buildings in the UK to achieve the WELL certification standard of employee well-being.

The Rutherford Cancer Centre is a £20 million investment project in to cancer diagnostics. Rutherford Diagnostics aims to become a leader in prediction, detection and prevention of cancer, and seeks to reduce waiting times for diagnostic tests from weeks to days. (source: www.rutherforddiagnostics.co.uk).

The Littlewoods building sits adjacent to Kilby House, and is undergoing a £54 million regeneration project; this has received a £17 milion funding commitment from the Liverpool City Region Combined Authority’s Strategic Investment Fund. The Capital & Centric development has already been partially pre-let to anchor tenant Twickenham Studios, one of the UK’s oldest operating studios. John Moores University has also leased 75,000 sq ft of space. Liverpool is the most filmed British City outside of London, and with the regeneration underway, the Littlewoods development has coined the name “Hollywood of the North”.

Lift Improvements:

During 2019, following recommendations by Knowsley Lift Services, improvements were undertaken to the lift services. Please refer to the report provided “Vertical Transportation Conditon Report” from Savills of March 2020. We have provided in the data room full details of the project.

Curtain Walling Works:

During 2020, works were undertaken by Delta Glazing, under the guidance of Tee Technical Building Forensics, to ensure the external façade was safe and water resistant. Please refer to the section within the data room. We provide the Health & Safety file along with the Specification and a Letter of Reliance issued by Tee Technical Building Forensics who advised on the works. We also provide further information regarding the specification from Delta Glazing, Promain, The Comprehensive Group.

Fire Risk Assessment:

A fire risk assessment undertaken in November 2020 by William Martin Compliance providing a risk rating of “Moderate”. An action plan was recommended and in the process of being implemented by the owner’s representatives.

The data centre section of the property provides a modern facility which provides high-speed connectivity to much of the Liverpool Innovation Park. Full details of the data centre specification can be found at the occupier’s website: www.aimes.uk/p-about-aimes. We draw your attention to the multiple Accreditations and impressive client list.

As an indication of the degree of infrastructure investment into the facility, Michael Walker, Project Director of AIMES, estimated that for AIMES to relocate to a different site, the capital investment required would be in the order of £5m. Mr Walker also confirmed that AIMES are shortly to embark on further significant capital expenditure to increase capacity in the Data Centre.

Mr Walker believes that the attractions for the Royal Liverpool and Broadgreen University Hospital Trust staff being located within the same building as the AIMES data centre include its location, facilities and digital connectivity, which enable the hospital’s IT staff to be productively located within Kilby House and, indeed, to have equipment hosted within the data centre.

In the case of Alder Hey Children’s Hospital, we are advised that the ability for front-line staff to be able to easily log-in to large, heavy images files for diagnostics, by being within the data centre below, assists the delivery of care on site and for the nearby hospital.

Alder Hey Children’s NHS Foundation Trust cares for over 270,000 children, young people and their families and leads research into children’s medicines, infection, inflammation and oncology. They treat everything from common illnesses to highly complex and specialist conditions from their main hospital site in Liverpool and across community sites and clinics throughout the North West.

The Trust is:

• A Centre of Excellence for cancer, as well as spinal, heart and brain conditions
• A Department of Health Centre for Head and Face Surgery
• A Centre of Excellence for Muscular Dystrophy and the first UK Centre of Excellence for Childhood Lupus
• One of four national centres for childhood epilepsy surgery, a joint service with the Royal Manchester Children’s Hospital
• A designated Children’s Major Trauma Centre
• The Trust has Europe’s only intra-operative 3-T MRI scanner which is a pioneering technology for neurosurgery, reducing repeat operations in 90% of cases

The Trust employs a workforce of 3,750 staff who work across the community and hospital sites and as a teaching and training hospital the Trust provides education and training to around 540 medical and over 500 nursing and allied health professional students each year.

For the year ending 31st March 2020 the Trust reported an operating turnover of £291 million and a cash balance of £90.03 million.

For further information see www.alderhey.nhs.uk.

In October 2019, the Royal Liverpool and Broadgreen University Hospitals NHS Trust merged with Aintree University Hospital NHS Foundation Trust to create the Liverpool University Hospitals NHS Foundation Trust.

The merging of the two organisations was integral to regional NHS plans to deliver improved quality of care and to make changes in existing care models. The merger provides an opportunity to reconfigure services in a way that provides the best healthcare services to the city and improves the quality of care and health outcomes that patients experience.

The Trust runs Aintree University Hospital, Broadgreen Hospital, Liverpool University Dental Hospital and the Royal Liverpool University Hospital. It serves a core population of around 630,000 people across Merseyside as well as providing a range of highly specialist services to a catchment area of more than two million people in the North West region and beyond.

The Trust has an annual turnover of around £890m and a combined workforce of over 12,000 staff, making it one of the largest employers in the region. It also has a successful Volunteers scheme, with more than 900 volunteers providing support in a variety of roles.

For the year ending 31st March 2020, the Trust reported a Surplus of £283m.

Between 1st October 2019 and 31st March 2020:

• 191,434 emergency and urgent attendances
• 99,208 Type 1 Emergency Department attendances
• 36,150 admissions from Emergency Departments
• 47,258 inpatients and day cases
• 6,434 planned procedures
• 50,925 unplanned procedures
• 40,824 day case procedures
• 487,800 outpatient appointments

(www.liverpoolft.nhs.uk/about-us).

The Natonal Health Service (NHS) is overseen by The Department of Health and Social Care (DHSC), a department of Her Majesty’s Government. The department is led by the Secretary of State for Health and Social Care.

NHS Foundation Trusts are fully part of the NHS but are controlled and run locally, not nationally. NHS foundation trusts were created to devolve decision making from central government to local organisations and communities. They provide and develop healthcare according to core NHS principles - free care, based on need and not ability to pay.

A foundation trust has a Council of Governors and a Board of Directors and is regulated and monitored by both the Care Quality Commission and NHS Improvement. Although still part of the NHS, foundation trusts are not directed by the Government which means they have greater freedom to decide, with their governors and members, their own strategy and the way services are delivered. They also have greater financial independence and are able to retain their surpluses and invest in service improvements for patients and service users.

From a financing standpoint, following annual government spending revenues by HM Treasury, Parliament approves the UK Public Sector Budget. The DHSC enforces this budget, and distributes the funds to NHS England. In turn, NHS England apportions the funds to the various Clinical Commissioning Groups (CCGs), across the UK. Finally, the monies get distributed to the NHS Trusts. In this way, the income from the NHS tenants reflects the creditworthiness of the UK government.

HM Treasury -> DHSC -> NHS England -> CCGs -> NHS Trusts -> Owner of Kilby House

Hence, both these NHS Trust tenants provide in effect “AAA” Government income.

The 2019 NHS long-term plan was formed in the wake of the NHS’ 70th anniversary; it sets out initiatives designed to future-proof the NHS over the next decade.The plan seeks to enhance and promote care coordination, predictive prevention of diseases, and a differentiated support-offering within the NHS service model. A key component of this framework is the digitization of primary and outpatient data.The end goal is to digitally connect patients and healthcare professionals through digitization of appointments and prescriptions; the NHS aims to offer a ‘digital first’ option of care for most patients within the next 10 years. This will incorporate artificial intelligence (AI) decision-making systems and predictive techniques to help clinicians best support their patients. This will, in turn, promote rigorously enforced technology standards to ensure the security of NHS systems and data. (Source: NHS Long Term Plan)