Global real estate investment manager AEW has made its first acquisition in the emerging European life sciences sector with the acquisition of Sydmarken 5, a fully let asset in the Medicon Valley of Copenhagen, Denmark.
AEW has made the purchase on behalf of its recently launched European open ended fund Eurocore which has closed on €415 mln of equity commitments to date. The fund aims to provide stable, long term income returns by investing in a future-proof diversified portfolio of core assets.
The Sydmarken life science campus offers a total of 32,755 m2 of space including specialist laboratories as well as modern offices. All of the buildings are fully let on long leases with an average lease to expiry of 14 years to well known, fast growing businesses in the pharma, medical and food production industries. The main occupiers on the campus include Zealand Pharma and Ferrosan Medical Devices.
Christina Ofschonka, senior fund manager for Eurocore at AEW, commented: ‘We have been seeking opportunities in the emerging life sciences sector given the highly resilient income it offers driven by strong underlying fundamentals. Across Europe the sector is characterised by low supply of good quality and highly specific stock that occupiers require, coupled with increasing demand that was already fuelled by increased government and private investment into healthcare and pharmaceutical research and manufacturing, even before the pandemic brought it into even sharper focus. Copenhagen’s life sciences industry is seen as a world leader and this asset is at the forefront of that reputation.’
AEW was advised by Bech-Bruun, KHR and Colliers.
