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(Sharecast News) - Frontier IP announced on Friday that it has entered into a strategic partnership with property developer Abstract Mid-Tech to establish a new innovation hub in Cambridge aimed at accelerating the growth of deep tech and life sciences start-ups.
The AIM-traded intellectual property commercialisation firm has agreed a 20-year lease for 18,000 square feet at the newly developed South Cambridge Science Centre in Sawston.
It said the facility would house Frontier IP's commercialisation team and provide office and lab space for its portfolio companies and other early-stage ventures aligned with the group's focus areas.
In exchange for becoming an anchor tenant, Frontier IP had received a 1m upfront payment from Abstract and would benefit from a 12-month rent-free period.
The hub was scheduled to open by the end of 2025.
Frontier said the new base would strengthen its footprint in Cambridge's science and technology ecosystem and enhance its presence within the UK's innovation "golden triangle" of Cambridge, Oxford, and London.
The centre is located near the Cambridge Biomedical Campus, home to major institutions including AstraZeneca, GSK, and Addenbrooke's Hospital.
Frontier IP said it expected the hub to improve access to deal flow, enhance collaboration with portfolio companies, attract investors, and accelerate commercialisation and exits.
The firm also planned to use the site to host regular events showcasing its portfolio.
Frontier said it would manage the costs of operating and upgrading the facility, adding that it expected to benefit from any rental income exceeding a breakeven point.
"I am excited by the possibilities offered when our innovation hub opens. I believe it will provide the basis to transform Frontier IP's growth potential," said chief executive officer Neil Crabb.
"We anticipate that a number of our portfolio companies will move in and that it will prove highly attractive to other potential start-ups and early-stage companies because of its place at the centre of Cambridge's investor and science and technology networks."
Crabb said the company's business model was based on identifying promising IP and providing hands-on commercialisation services to build successful businesses.
"Having a much closer physical presence between our commercialisation teams, portfolio companies and potential portfolio companies will enable us to accelerate their development and scale-up, and, eventually, successful exits."
At 1100 BST, shares in Frontier IP Group were down 6.36% at 20.6p.
Reporting by Josh White for Sharecast.com.