Hong Kong-based real estate asset manager ESR Group Ltd (HKG: 1821) has made its first investment in the life sciences sector by acquiring an R & D business park in Shanghai’s Zhangjiang Hi-Tech Development Zone. The 8,940 sq. m. site, named Zhangjiang NEO, was purchased for RMB268 million (USD39.8 million).
Zhangjiang NEO Details
Zhangjiang NEO comprises two blocks of 4-to 5-storey pharmaceutical R & D lab and office space. Over 90% of its tenants are leading biopharmaceutical companies engaged in innovative medicines for oncology and immunology (including small molecules and biologics), recombinant protein R & D, and new drug discovery and development.
ESR’s Strategic Move
ESR, which currently manages USD140 billion in assets, aims to address the growing demand of the biopharma industry in China and Asia. The company plans to leverage its core competitive advantages by creating innovative formats such as shared laboratories to meet pharmaceutical companies’ R & D needs. Zhangjiang was responsible for 15% of the new drugs under development globally in 2020, while China is the world’s second-largest pharma market.-Fineline Info & Tech
