U.S. Private Equity Firm Bets on Boom in U.K. Science Labs

Harrison Street Real Estate Capital LL is betting on the growth of the U.K.’s bio-tech industry with a deal to combine the country’s largest science incubator with a portfolio of science parks.

The company has formed a venture with Trinity Investment Management to acquire its real estate business and combine it with BioCity Group, according to a statement. BioCity helps startups through early stage venture capital investment and accelerator programs.

Science parks have become one of the hottest real estate niches in the U.K. as international investors look to piggy-back on increased government funding for a sector that has been among the few beneficiaries of the coronavirus pandemic. The country has a shortage of purpose built space for commercialising scientific research, despite boasting several of the world’s top academic institutions and pharmaceutical companies.

In addition to Trinity’s portfolio of life science properties in the U.K., the venture will also acquire 12 science parks, according to the statement. The new business, valued at about $167m, will be called We Are Pioneer Group and will manage a portfolio spanning 2.6 million square feet.

Chicago based Harrison Street, which is owned by broker Colliers International Group Inc., has invested heavily in science facilities in the U.S. where demand for hubs around top universities has lured billions from real estate investors. Blackstone Group Inc last year recapitalised a portfolio of BioMed Realty life sciences buildings for $14.6bn.

Source: Yahoo Finance