Oxford Properties, the property arm of Canadian pension fund giant OMERS, has expanded its life sciences platform with its first European acquisition involving the AstraZeneca headquarters in Cambridge, UK.
Oxford, which currently has a $1.1 bn life sciences portfolio in North America, has bought 310 Cambridge Science Park in its first investment in the sector in Europe.
The £45 mln (€52 mln) off-market transaction from the local authorities’ property fund represents the seventh life sciences asset Oxford has acquired since the start of 2021 that, when accounting for new development opportunities at these properties, accounts for over $1.3 bn in deployed capital.
The transaction comes as part of an acceleration of Oxford’s established life sciences strategy. Oxford currently has over 1 million sq ft of life sciences properties, in addition to a development pipeline in excess of 2 million sq ft.
Oxford intends to deploy £1.2 bn (€1.4 bn) in European life sciences over the next five years, as part of its goal to build an $10-15 bn global life sciences business over time. Oxford’s initial European focus will be on opportunities within the UK, with eventual expansion into other core territories across Europe.
In line with its broader investment strategy, Oxford can access life sciences-focused real estate through multiple entry points including direct property acquisitions and developments, investments in platforms and via debt, having previously lent to private equity investors including mezzanine financing for the $8 bn privatisation of a life sciences real estate firm.
310 Cambridge Science Park provides 59,000 sq ft (5,480 m2) of fully fitted laboratory space and ancillary office accommodation, with around half fitted out as high specification wet labs. The asset is fully let to AstraZeneca until November 2023, after which the firm will relocate to a new headquarters.
Founded in 1970, Cambridge Science Park is a 152-acre campus located at the northern edge of the City of Cambridge and provides 1.9 million sq ft of office, lab and R&D space to 130 occupiers spanning life sciences, pharmaceuticals, technology and engineering. It is currently 100% let.
Jo McNamara, executive vice president, Europe and Asia-Pacific at Oxford Properties, commented: ‘Since our first life sciences investment in 2017 this sector has been one of Oxford’s key global conviction calls. The sector is supported by several structural tailwinds including demographic changes and the convergence of science and technology. Advances in data analytics and AI are accelerating life-changing innovations across biotech, pharmaceuticals, nutrition and medical devices.
'As a result, both private and governmental funding for promising products and companies has markedly increased in recent years. As this capital is deployed, occupier requirements increase, leading to the availability of little to no space in key global hubs such as the Cambridge Science Park or Kendall Square in Boston, which provide tenants with highly desirable networking and talent pooling ecosystems.’
She continued: ‘As we have grown our platform in North America over the past few years, we have seen the sector evolve and mature and we are now beginning to see the same pattern emerging in Europe. We intend to use the learnings and expertise we have built up in the US to fulfil our ambition to replicate that success in Europe.’
Oxford Properties was advised by Creative Places and CCLA was advised by Cluttons.
