This article is from the Australian Property Journal archive
PRIVATE equity firm Wentworth Capital and BlackRock’s real estate business have launched a $1.5 billion life sciences platform.
The new platform will be seeded with two life sciences assets in Sydney, surrounded by established pharmaceutical and life science occupiers with proximity to universities, established innovation precincts, and core transport infrastructure.
The first is a 12,700 sqm purpose-built laboratory building at 17 O’Riordan Street in Alexandria, currently operated by Lifeblood as a demand driven 24-hour blood processing centre.
The asset is strategically located in a mixed-use precinct within Sydney’s CBD fringe market connecting Sydney’s CBD to Sydney Airport. Lifeblood’s proximity to the airport, hospitals and transport hubs for staff and donors provides the capacity to reach 88% of Sydney’s population within 45 minutes.
The platform has also acquired laboratory and office asset located at 37 Epping Road, Macquarie Park. The 8,113 sqm building is leased to Teva Pharmaceuticals, the largest manufacturer of generic pharmaceuticals and one of the 20 largest pharmaceutical companies globally.
BlackRock head of Australia real estate Ben Hickey said life sciences sector in Australia is riding strong tailwinds, as witnessed in the UK and USA.
“We believe the life sciences sector represents a growing opportunity to capitalise on the long-term sectoral tailwinds driven by increased government and infrastructure spend, as well as the existing capability of Australian universities, industry and innovation clusters.
“As Australia enjoys significant runway for growth similar to trends seen in the UK and US markets, we aim to invest in fit-for-purpose laboratory assets that supports the rising industry demand and the growth of dynamic life science and biomedical innovation hubs in the country,” he added.
Real estate private equity firm Wentworth Capital is backing the sector after purchasing the University of Sydney’s Medical Foundation building last year, and is set to develop a $500 million life sciences campus facility.
“Since acquiring the University of Sydney Medical Foundation Building last year, our focus has been on enhancing our presence and capitalising on the growth and development in Australia’s Life Sciences and Innovation sectors,” said Paul Apostoles, executive director of Wentworth Capital.
“To support the growth of the portfolio and help support our customers, we have established Area 53, a specialist Life Sciences & Innovation operating platform company. These two strategically located assets reaffirm our conviction in this investment opportunity and our commitment to supporting innovation and development in Australia.” Apostoles concluded.
