Overview

Since 21 January 2021 Urban&Civic has been owned by the Wellcome Trust as an investment within its investment portfolio.

Why have they been important?

The aim of the Wellcome Trust’s investment portfolio is to maximise returns over the long term to ensure that the Wellcome Trust continues to have sustainable resources for its charitable activities. Wellcome’s investment strategy also targets companies that take their environmental, social and governance responsibilities seriously.

The Urban&Civic business model aligns strongly with this strategy and investment horizon. Furthermore, we are directly working with our shareholder to bring forward the extension of its globally renowned Genome Campus at Hinxton.

What do they want from us?

• Strong governance and risk management
• NAV growth
• Profit growth
• ESG leadership
• Transparency
• Timely and accurate reporting
• Clear strategy and execution

Methods of engagement

Our Board has two nominees of the Wellcome Trust including our Chairman. There is regular dialogue throughout the year with bilateral presentations to spread further knowledge and understanding. We act as development manager for our shareholder in the context of Hinxton.

How we engaged in the year

The Wellcome Trust has been both engaged and supportive throughout the year. Following transfer of the Farmcare assets last year it approved the disposal of two farms which did not have long-term development potential. Funds generated have been reinvested together with additional shareholder capital into core Urban&Civic assets. This included the acquisition of the outstanding 91.1 per cent interest in Waterbeach from the Ministry of Defence for c.£117.5 million to become freehold owners of the site. The Wellcome Trust internal audit function will provide internal audit services to Urban&Civic from this year. Our Chair of the Audit Committee and wider team have been engaging with the Wellcome Trust’s internal audit team during the course of the year to prepare for this transition. Senior Directors from Urban&Civic have presented to the Wellcome investment team on the UK property market and the Master Developer approach to development. Board discussions have identified and addressed shareholder considerations in terms of the additional funding provided and governance changes.

Outcomes

The Wellcome Trust has full visibility of our business and is strongly supportive of our strategic objectives and our purpose, vision and values. This year we have distributed via gift aid £17.0 million to the Wellcome Trust. In addition, the Wellcome Trust has transferred to Urban&Civic a number of wider land assets from other parts of its investment portfolio which have either been sold or are being considered for their long-term development potential. Additional funding has been provided to take advantage of commercial opportunities.

We have now assumed responsibility for the delivery and expansion of the Genome Campus at Hinxton and established a strong working relationship with Wellcome and Campus teams including undertaking presentations to the Wellcome Board.