AXA Investment Managers - Real Assets has purchased a leading owner and operator of science parks and laboratories in Europe, giving it entry to and immediate scale in the burgeoning asset class.
AXA IMRA is buying the Kadans Science Partner business from funds advised by Oaktree Capital Management LP. Financial details were not disclosed, but market sources consulted by PropertyEU put the purchase price at €500 mln.
Kadans owns a portfolio of research locations in the Netherlands, UK and Germany, comprising 150,000 m2 of operating space across 20 assets as well as a further seven developments that will deliver around 70,000 m2 over the next three years.
Originally founded in the late 1990s, Kadans evolved its focus on developing and operating specialised or purpose-built commercial life science buildings. Kadans’ assets combine offices and incubator space alongside a range of specialist spaces including laboratories, cleanrooms and tech halls, as well as research and development facilities such as climate-controlled environments and pilot plants.
The portfolio’s tenant base comprises a mix of global corporate, SME and start-up businesses, as well as academic and government institutions in innovative growth sectors such as life sciences, food, health, biotechnology, and high-tech semiconductors.
AXA IMRA described Kadans as ‘unique’ in its focus and scale within the European life sciences sector. Although well established in the US, life sciences is still an emerging - albeit fast growing - asset class in Europe.
John O’Driscoll, head of European transactions at AXA IMRA, commented: ‘This is a significant transaction for AXA IM - Real Assets as it allows us to enter a high conviction sector at scale.
‘Kadans is a clear market leader in the life science and lab offices sector and the acquisition provides us with a unique opportunity to access a fully integrated platform comprising an existing operational portfolio and an extensive development pipeline together with a management team with unrivalled operational expertise.’
AXA IMRA will work with the existing management team, who will stay with the business and retain a minority stake, to accelerate the growth of the platform across Europe.
Michel Leemhuis, chief executive at Kadans, said: ‘For many years Kadans has accommodated knowledge-intensive enterprises throughout Europe, based upon our strong belief that the expansion of knowledge is an important driver of economic growth in Europe.
‘The ecosystems we develop therefore aim to facilitate collaboration and knowledge sharing. We are grateful to Oaktree for the support over the past three years and are very happy to expand our mission alongside AXA IM - Real Assets, whose extensive network and local presence in most European countries gives us the opportunity to strengthen our leading position in the European market for life science and lab offices. We are delighted with this partnership and look forward to a successful journey together.’
JLL acted as exclusive M&A and real estate advisor to AXA IMRA on the acquisition.
