Swiss private equity firm Partners Group has begun talks with developers as it seeks to make its debut in the UK’s burgeoning life sciences sector.
The firm is aiming to invest in a new-build life sciences project with high ESG credentials for its first foray in the market. It is searching for a site that is of a similar scale to its locations in the US.
Upon completion of the project, the firm will look to exit the investment in five to seven years.
Although the Golden Triangle of London, Cambridge and Oxford is understood to be a preferred location, the firm is also open to sites across the rest of the UK as long as there is scope to create a cluster.
Rahul Ghai (pictured), managing director and co-head of private real estate Europe at Partners Group, told EG: “Life sciences is an emerging theme within European real estate that offers exciting transformational investment opportunities.
“Given the short history of institutional investment in the European life sciences sector, investors tend to look at clusters for meaningful opportunities. This is where educational institutions, companies and investors congregate to drive innovation.”
The news comes as Partners Group prepares to make its first life sciences investment in Singapore.
“The life sciences sector has traditionally been difficult to crack,” said Ghai. “However, at Partners Group our strong investment track record in the more mature US life sciences sector, as well as our thematic investing approach, gives us a great informational and competitive advantage.”
The investment firm bought One Cabot Road in Medford, Massachusetts, earlier this year in a joint venture with affiliates of the Davis Companies as part of a $260m (£218m) deal. The 308,954 sq ft building will be converted from all-office use into an R&D and life sciences facility with class A lab space.
Another project has seen Partners Group collaborate with US real estate firm SteelWave on regenerating a 154,000 sq ft building in Boulder, Colorado.
See also: Central London life sciences take-up is five times that of last year
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