UBS AM launches UK life sciences strategy with gross development value over GBP 2.5bn

17 October 2022

UBS Asset Management publishes on their website

• New strategy to capitalize on growing opportunities in UK life sciences sector
• Key assets already acquired in ‘golden triangle’ of prime locations in the south-east
• Assets to be co-developed with Reef Group, a leading UK developer in the sector

UBS Asset Management’s Real Estate & Private Markets business today announces the launch of its first UK life sciences property strategy, in partnership with Reef Group, with commitments of GBP 400 million from first close investors and a gross development value in excess of GBP 2.5 billion. Deploying a build-to-core approach, the Article 8 strategy seeks development opportunities in the life sciences sector, with a specific focus on good manufacturing practice (GMP) facilities.

To-date, four sites have been secured within the ‘Golden Triangle’ of London, Oxford and Cambridge, with a forecasted gross development value in excess of GBP 2.5 billion. This includes a joint venture with GSK in Stevenage to develop out a global innovation campus; a 500,000 square foot advanced manufacturing cluster in Stevenage’s town centre focusing on GMP; a pre-let GMP development opportunity in Greater London; and a lab-led opportunity in Oxford city centre.

Central to the strategy is its social and environmental focus. The facilities will create significant local skilled employment opportunities, and in partnering with developer Reef Group, will provide fit-for-purpose, impactful buildings to companies focused on research and development (R&D) and healthcare innovations. Throughout the construction and operation of the facilities, UBS Asset Management will work with stakeholders to actively pursue net zero carbon emissions.

Jon Hollick, Head of Real Estate EMEA ex DACH, UBS Asset Management, said:

“We are delighted with the assets secured and believe this market offers strong risk-adjusted returns, as well as compelling ESG attributes. We are utilizing the wider UBS healthcare capabilities and working closely with Reef Group to differentiate ourselves in a complex and fast-moving market.”

Piers Slater, Joint Chief Executive, Reef Group said:

“The Reef team are delighted to be partnering with UBS to deliver a range of life science schemes across the UK through a dedicated strategy. Together we are working to create key R&D and manufacturing hubs across the UK for knowledge tenants with the aspiration of creating a world class A1M corridor. Our schemes are designed to facilitate a worldwide audience, but also to assist local investment and skills.”

Source: UBS