Lendlease eyes life sciences hub in London project – The Australian Financial Review

Lendlease will devote space in its $10.7 billion above-station redevelopment of London’s Euston station to life sciences real estate in the latest move by the developer to tap the fast-growing alternative asset class given a kick along by the pandemic.
ASX-listed Lendlease is developing 335,000 square metres of office space – along with 65,000sq m of retail – in the project at Britain’s sixth-busiest railway station and will include the growing sector that encompasses laboratories, medical science facilities and offices, and manufacturing spaces, the company said.
Lendlease’s planned Euston Station redevelopment project will develop 400,000sq m of commercial space and 2000 apartments on the site of London’s sixth-busiest railway station.  
“We’re developing 6-million square feet (557,400sq m) at Euston, some of which will be homes, the rest of which will be a mix of uses, some of which will be life sciences,” UK trade press last week reported Lendlease’s development director for Euston Jenny Sawyer as saying.
“We think it’s an opportunity to have science next to arts next to culture next to education next to conventional offices.”
A Lendlease spokesman declined to say how much space at the precinct – near the Francis Crick Institute and London BioScience Innovation Centre – would be devoted to life sciences, pointing to a public consultation process that kicked off last month.
But Lendlease has high hopes for the sector that real estate agency Colliers expects will boost its Australian revenue to $10.3 billion from $8 billion in the decade to financial year 2026-27.
Last month it paired with Dutch pension fund manager PGGM to seed what it hopes will become a $1 billion fund investing in life sciences real estate in Singapore, Japan and Australia.
Others have high hopes too. In May, investment manager Nuveen was tapping Australian investors to put capital into life sciences and medical offices, describing a lab inventory it said would increase to 22 million square metres by 2042 from 13.4 million square metres, based on a 4 per cent annual growth in lab jobs.
Government support for biosciences and medical research, along with an ageing population of Australians willing to spend more on their bodies, health and wellbeing made the sector an attractive alternative asset class for longer-term investors such as super funds, Colliers 2022 Life Sciences Report says.
Demand was increasing for suitable space in locations that would support companies operating in the sector, said Joanne Henderson, Colliers’ national director of research.
“Due to the specialised requirements needed for both the location – such as being close to hospitals, health institutes and universities – and the type of building required for a life sciences operator including laboratories, R&D space and specialised storage requirements, new purpose-built developments will in many cases be the only option,” Ms Henderson said.
The sector also presented opportunities both for owners of development sites close to existing and planned health hubs around hospitals and universities, as well as for investors with longer time frames, given the long lease terms that many life science companies preferred to take out, she said.
“Life science real estate offers a lower risk asset offering a long-term cash flow with reduced levels of rental downtime,” Ms Henderson said.
Follow the topics, people and companies that matter to you.
Fetching latest articles
The Daily Habit of Successful People


Leave a Reply

Your email address will not be published. Required fields are marked *