Partners Group, the Zug-based global asset manager specialised in private markets, is exploring a number of European life sciences opportunities to make its entry into the market, according to Rahul Ghai, co-head Private Real Estate Europe at Partners Group.
‘Life sciences is one of the key investment themes we are going to invest into,’ Ghai told PropertyEU, adding that the firm has already looked at a number of opportunities in the Netherlands, Germany and the UK. ‘We acknowledge that there is a shortage of supply and also a shortage of mature operating partners because most players entered the space six or seven years ago. This is not a very easy market to crack,’ he admitted.
The availability of a young workforce is a critical factor when it comes to cherry-picking locations, as well as the presence or absence of tax incentives or other programmes funded by governments to support the sector.
‘Most of our investments in the life sciences sector have so far been in the USA, in Boston and Colorado. In those markets we have seen significant growth in government funding for R&D, which increased during the pandemic,’ noted Peter Holden, Partners Group’s co-head Real Estate Asset Management.
Having a good local operating partner to understand the market is very important, added Holden. ‘We invest with our partners and rely on their market insight to execute business plans and we pivot where necessary to capture changing demand. We are typically the majority investor for our directly controlled assets. In Europe, there are several players looking to convert legacy assets, for example into a modern life sciences facility. We are naturally cautious about such proposals and draw on our experience in the USA where the life sciences market is more mature.’
