Newcastle University
Third Party Occupancy Policy
Introduction
There are three reasons for the University having third parties on its premises. First, third parties who
occupy University property held for investment purposes. Secondly, the University wishes to engage with
third parties where there is a strategic benefit relating to the core business of research and teaching.
Thirdly, the University wishes to engage and/or support interaction with young companies as part of its
civic mission. Each of these reasons will result in a different contractual and financial relationship. This
policy sets down the decision making route and approach to third party occupation of University
buildings.
Commercial
The most straightforward activity relates to commercial letting of space not utilised for core teaching and
research activities. Requests to occupy this space must be sent directly to the Property Team within
Estate Support Service, who will work with stakeholders to identify appropriate space and outline the
commercial rent and service charges. Identified higher risk activities and safety procedures are
forwarded to the Occupational Health & Safety service (OHSS) who will consider the appropriateness of
the request and the suitability of identified space. The request will then be forwarded to Space Utilisation
Monitoring & Arbitration Committee (SUMAC) for initial approval to proceed.
Post acceptance, SUMAC will be notified and the Occupation Agreement will be reviewed periodically as
per the agreement. The relationship with these third parties will be governed wholly by a property
agreement managed by Estate Support Service (ESS).
‘Partnership’
It is in the University’s interest to develop relationships with third parties where there is a strategic benefit
to the University’s teaching or research activities. Proposals to bring these types of third parties onto
campus must first be approved by the Academic Unit/Service responsible for the space and supported
by their Faculty Pro-Vice Chancellor (PVC)/Registrar. Third-parties occupying space through this route
will normally be expected to pay a commercial rent and service charge.
Following academic approval the space requests should be submitted to Estate Support Service
together with a Risk Assessment of the Third Party’s proposed activities. ESS will consult with Research
and Enterprise Services (RES) who will prepare a business agreement for the non-property aspects of
the transaction. Risks will be forwarded to the OHSS and the request will be referred to SUMAC for
consideration. A clear period for the occupation of the space will be established and the nature of the
business activities will be reviewed at least on a three yearly cycle by RES.
The business/financial relationship will be recorded in a business agreement covering non-property
matters which will be monitored by RES and concurrently, a Property Agreement which will be reviewed
annually by ESS. Where appropriate, the Business and Property agreements will be combined as one
document.
Incubation (spin-out and spin-in companies)
The University wishes to support the development of young companies where there is an overall
alignment with the University’s mission. Incubation will be undertaken in space formally designated as
committed to incubation (“Dedicated Incubation”). This space has been designated as incubation space
and is not expected to be utilised for any other purposes for the foreseeable future.
Requests to occupy Dedicated Incubation units (i.e. Biomedical Research Building, Medical Science
Incubators and the International Centre for Life) are referred to the relevant Faculty Research Enterprise
Services and the Estate Faculty Co-ordinator. Research Enterprise Services will outline the commercial
rent and service charges and establish the agreement with the company. Identified higher risk activities
and safety procedures are forwarded to the OHSS for consideration. Once approved, SUMAC will be
notified and the Occupation Agreement will be reviewed every three years.
All non property incubation matters will be set down in a Business Agreement, in addition to the Estate
Support Service Property Agreement. RES will coordinate the relationship with the third party. Where
appropriate, the Business and Property agreements will be combined as one document.
Space Considerations
The University has limited space at its disposal but at the same time it is important to optimise on the
effective use of space by avoiding ‘void’ space. Spare capacity within buildings can be made temporarily
available, as agreed by SUMAC, for ‘Partnership’ arrangements. The duration for these periods will be
stipulated in all Business Agreements and managed by RES.
Fees and Charges
As a charitable body the University cannot subsidise the business activities of a third party without a
benefit to the University or alignment with the University’s objectives. Third parties will be required to
pay a rent, which will reflect the use, quality and location of the accommodation and a service charge,
which is based upon the cost of servicing the accommodation. Rents and service charges will be
collected by the Estate Support Service. The rental element will be credited back to the School/Service
releasing the space for a limited period, agreed by SUMAC before becoming a true ‘void’ space.
Where the third party comes through the Incubation route or partnership route these third parties may be
able to apply to occupy space at reduced rents for a period. Any reduced payments need to be
considered as part of the business case and included in the Business Agreement.
Third Party Commercial Support Group
The Third Party Commercial Support Group (CSG) (chaired by Estates Support Service) comprises
members of the various Services involved in third party occupancies. It will meet at least annually, to
review the overall third party portfolio. It will prepare a third party space report for consideration by
SUMAC and FMBSG identifying, through the Research and Enterprise Services, the level of ‘subsidy’
being offered against commercial rents and the duration/termination period of each third party.
IT & Telecoms
The University provides a basic IT system (A UTP Ethernet based fixed-wired network) for third parties,
third parties should make their own arrangements for any IT provision or support over and above this
basic provision. Where facilities exist, third parties will be granted access to the University’s telecoms
network on a cost recovery basis.
Legals
In all cases any third party invited onto campus will complete a licence agreement prepared by the
Director of the Estate Support Service. This is to ensure that all third parties are aware of their health &
safety and insuring obligations to the University and to protect the integrity of the University’s land and
buildings. Where the arrangement is on other than a full commercial basis there will also be a business
agreement covering other non-property matters.
Flowchart
The attached flowchart demonstrates the process to be followed for Partnership, Incubation (Dedicated
and Embedded) and Commercial occupancy requests.
Len Wilson
Head of Capital Development
29 May 2013
Approved by EB June 2013
THIRD PARTY OCCUPANCY REQUEST FLOW CHART
NOTES: SUMAC (Space Utilisation, Monitoring and Arbitration Committee); FMBSG
(Financial Monitoring & Budget Scrutiny Group); SPRWG (Space & Project Request Working
Group); IPR (Intranet Property Register); RES (Research Enterprise Services); OHSS
(Occupational Health & Safety Service); ESS (Estate Support Service); EFC (Estate Faculty
Coordinator); Commercial Support Group (CSG)
Request for short-term
accommodation within space
managed by the Faculty or
School. Third Party contacts
RES
Request for accommodation
within dedicated incubation
space managed by the
University. Third Party
contacts RES
Request for accommodation
within vacant space managed
by Estate Support Service
(ESS). Third Party contacts
ESS Property
PARTNERSHIP REQUEST
Director RES
(RES Gatekeeper)
INCUBATION REQUEST
Director RES
(RES Gatekeeper)
COMMERCIAL REQUEST
Director ESS
(ESS Gatekeeper)
Sponsor (Head of Unit)
identifies business need,
suitable space and liaises
with RES and EFC
Request referred to relevant
Faculty Enterprise Team and
EFC
Property liaises (with
reference to SUMAC) with
ESS Planning to identify
appropriate space
RES outline commercial rent
and services charges with the
third-party and make a
conditional offer
RES liaises with the EFC and
identifies appropriate space
within dedicated Incubation
portfolio
Property outline commercial
rent and service charges with
the third-party and make
conditional offer
Identified higher risk activities
and safety procedures
forwarded to OHSS for
University consideration on
appropriateness
RES outline commercial rent
and services charges with the
third-party and make a
conditional offer including any
agreements approved by the
Faculty
Identified higher risk activities
and safety procedures
forwarded to OHSS for
University consideration on
appropriateness
Post OHSS acceptance, RES
and sponsor complete a
‘space request form’ detailing
insurance, higher risk health
& safety activities, business
need, and whether the
proposed space is to be
offered on a commercial rent
basis (or, by agreement, part
thereof) in addition to the
service charge
Identified higher risk activities
and safety procedures
forwarded to OHSS for
University consideration on
appropriateness
Property complete a ‘change
notification’ (or if formal
approval required, a ‘space
request form’) detailing
insurance, higher risk health
& safety activities and change
notification/space request
logged with ESS Planning
Faculty Endorse/Reject
enquiry and space request
logged with ESS Planning
Post acceptance RES
complete a ‘change
notification’ (or if formal
approval required, a ‘space
request form’) detailing
insurance, higher risk health
& safety activities, business
needs, and change
notification/space request
logged with ESS Planning
Change notification submitted
to SPRWG and SUMAC for
information (or space request
submitted to SUMAC for
approval)
Request submitted to
SUMAC for conditional
approval; to FMBSG if any
other agreement is proposed,
RES produce a Business
Agreement and submit a
Change notification form to
SPRWG and SUMAC for
ESS prepare third-party
Property Agreement and
provide ongoing management
of occupation and
including any rental holiday
proposals made through
RES, who will produce a
Business Agreement
accordingly
information (or space request
submitted to SUMAC for
approval)
rent/service charge with a
periodic review of rent
Approving Body, SUMAC for
straightforward commercial
rents, FMBSG for any
departure from this
Approving Body, SUMAC for
straightforward commercial
rents, FMBSG for any
departure from this
Approving Body SUMAC
ESS prepare third-party
Property agreement and
provide ongoing management
of occupation and
rent/service charge with
annual review
Security requirements and
other administrative tasks
identified for EFC to
undertake once Business
Agreement (RES) and thirdparty Property agreement
(ESS) signed
Planning Team update IPR
Planning Team update IPR
ESS provide ongoing
management of occupation
and rent/service charge with
annual review of rent
Review of business
relationship with University by
RES every three years
Planning Team update IPR
CSG review annually
Review by RES every 3
years, CSG annually
CSG review annually