Commercial Financier

2 weeks ago


Canada Jones Lang LaSalle Incorporated Full time
The life sciences hotspot on investors' radar

China's life sciences sector is the hottest in APAC, with investors lured by its robust policy support and vast market potential

December 14, 2023

Life sciences deal activity in China has eclipsed investment in all other markets across the Asia Pacific (APAC) region, a sign of confidence in government policies supporting the sector and the market's untapped opportunities.

Transactions in APAC during the first nine months of 2023 surpassed full-year volumes in 2022, with China dominating deal activity, JLL data shows .

Notable among these deals was Simcere Pharmaceutical's RMB850 million ($120 million) sale-and-leaseback of the Zhangjiang Medical Valley Life Sciences Industrial Park to Concora, a subsidiary of Ascent Investment Group's biomedical industrial park business.

"Investors are increasingly targeting sale-leasebacks by life sciences companies looking to recycle capital to focus on their core research and development (R&D) business," says Susan Ding, Director, Research, China, JLL. "In this approach, the buyer operates and manages the business park which houses R&D labs and office spaces, while the seller becomes the anchor tenant securing the occupancy rate and providing stable rental income."

The government's years-long planning and policymaking efforts have played a crucial role in the success of these clusters, both at the country and state level.

Take the Healthy China 2030 blueprint, which was launched in 2016 to improve healthcare services and financial coverage through reformed legislation and institutional reorganisation.

In its latest five-year development plan, Shanghai is also prioritising the growth of its biopharmaceutical market to achieve RMB1 trillion ($141 billion) by the end of 2025, up from RMB600 billion ($85 billion) in 2020.

Ripe for investment

To be sure, recovery in leasing and investment activity in China's life sciences sector remains significantly below the peak levels observed during the pandemic. But a major development fuelling investor optimism is the slew of impending drug patent expirations, an enticing opportunity for those seeking to enter the sector.

Subscribe

Looking for more insights? Never miss an update.

The latest news, insights and opportunities from global commercial real estate markets straight to your inbox.

"With many branded drug patents approaching patent expiry in the next few years, Chinese pharmaceutical companies and contract development manufacturing organisations (CDMOs) are likely to capitalise on this opportunity through the production of generic medicines," says Colin Bridge, Director, Industries Research, Asia Pacific, JLL.

"They'll be looking to leverage their extensive manufacturing capabilities and strong innovation ecosystem to create these drugs as soon as possible and release them to the market," he says.

Against other life sciences manufacturing powerhouses like Hyderabad and Bangalore, Shanghai has the added advantage of a sizeable life sciences talent pool.

The presence of leading life science clusters hosting a range of multinational companies and a vibrant start-up community is an attractive proposition for those looking to pursue a career in the industry.

Government policies and incentives, specifically designed to lure life science professionals, are also making inroads into reversing the 'brain drain' phenomenon by attracting top talent abroad back to China, Bridge adds.

"Most public hospitals in China are affiliated to the top universities, which produce a steady stream of life sciences talent," Ding says.

For the universities, close collaboration with the hospitals provides the professors and professionals with a direct resource for conducting clinical trials of new patents and drugs. "This collaboration allows for the effective translation of research findings into practical applications, benefitting both academia and the healthcare industry," says Ding.

Another major draw for life sciences investors has been the fast-developing market for China's real estate investment trusts (C-REITs), which primarily include underlying assets including industrial parks, warehouses, and rental housing.

"C-REITs provide an alternative avenue for investors looking to divest stabilised assets to raise capital," says Ding.

First launched in 2021, the broadening C-REIT scheme now offers life sciences investors a new exit strategy to sell their business park assets on public markets.

In November, China's securities regulator further expanded the range of sectors with its approval of new C-REITs covering retail properties.

Untapped opportunities

While there has been a gradual recovery in investment activity this year, the overall decrease in life sciences funding over the past two years, primarily influenced by interest rate hikes, has dampened leasing activity in the asset class.

Despite this slump, approximately 9 million square metres of land has been allocated for the development of life sciences stock in Shanghai alone by 2025.

This could potentially lead to an oversupply scenario, Ding warns, unless funding rebounds swiftly.

However, concerns remain premature as new opportunities emerge.

"For instance, the trend of technology companies venturing into life sciences in areas such as AI-driven drug discovery could present new opportunities," says Ding.

"In the near term, investors, especially insurance companies and financial institutions, continue to be attracted by the stable performance of life sciences real estate in terms of rent and cash flow."

Gain valuable insights on the APAC life sciences industry.

Looking for more insights? Never miss an update.

The latest news, insights and opportunities from global commercial real estate markets straight to your inbox.

Uncover opportunities and capital sources all over the world and discover how we can help you achieve your investment goals.

#J-18808-Ljbffr

  • Canada Northbridge Financial Corporation Full time $70,000 - $90,000

    Senior Underwriter, Technical Risk page is loaded Senior Underwriter, Technical Risk Apply locations Vancouver, BC Calgary, 220-12th Avenue SW time type Full time posted on Posted 4 Days Ago job requisition id R3218 What it's like to be a Northbridge Senior Underwriter Our Senior Underwriters customize solutions for our commercial clients when they need...


  • Canada Metrolinx Full time

    Metrolinx is connecting communities across the Greater Golden Horseshoe. Metrolinx operates GO Transit and UP Express, as well as the PRESTO fare payment system. We are also building new and improved rapid transit, including GO Expansion, Light Rail Transit routes, and major expansions to Toronto’s subway system, to get people where they need to go,...


  • Canada Metrolinx Full time

    Metrolinx is connecting communities across the Greater Golden Horseshoe. Metrolinx operates GO Transit and UP Express, as well as the PRESTO fare payment system. We are also building new and improved rapid transit, including GO Expansion, Light Rail Transit routes, and major expansions to Toronto's subway system, to get people where they need to go, better,...


  • Canada Metrolinx Full time

    Metrolinx is connecting communities across the Greater Golden Horseshoe. Metrolinx operates GO Transit and UP Express, as well as the PRESTO fare payment system. We are also building new and improved rapid transit, including GO Expansion, Light Rail Transit routes, and major expansions to Toronto's subway system, to get people where they need to go, better,...


  • Canada Jones Lang LaSalle Incorporated Full time $90,000 - $100,000

    Senior Financial Analyst, Capital Markets page is loaded Senior Financial Analyst, Capital Markets Apply remote type On-site locations Vancouver, BC time type Full time posted on Posted 2 Days Ago job requisition id REQ364036 JLL supports the Whole You, personally and professionally. Our people at JLL are shaping the future of real estate for a better world...

  • Commercial juridique

    2 weeks ago


    Canada Crédit Agricole Group Full time

    We are looking for a passionate Head of Legal for Canada to join our team! As the Head of Legal, you will play a crucial role in managing the legal function in Canada while overseeing various legal, regulatory, and reputational risk management initiatives. Reporting to the General Counsel Americas and the Senior Country Officer for CACIB Canada, you will...

  • Commercial Director

    1 week ago


    , , Canada Accor Hotels Full time

    Company Description Join us at Accor, where life pulses with passion! As apioneerin the art ofresponsiblehospitality, the Accor Groupgathersmorethan45 brands, 5,600hotels, 10,000 restaurants, and lifestyle destinations in 110 countries.Whileeachbrand hasitsownpersonality,whereyouwillbeable totrulyfindyourself,theyallshareacommonambition:...


  • Canada Amcor Full time

    **About Amcor** - Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home - and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve value chains through a range of...


  • Canada Trisura Group Full time

    Our growth and our entrepreneurial style, niche market position and development opportunities ensure that our people see the results of their commitment reflected in the company's success. We are currently seekign an analytically-minded and customer-oriented Underwriter to join our high-performance Contract Surety team in Toronto. Financial Analyst /...


  • Canada Newcrest Mining Limited Full time

    Newmont: A Golden OpportunityNewmont has recently merged with Newcrest Mining to establish the world's premier gold mining company. Our global operations embrace diversity, fostering an inclusive environment where everyone can thrive and contribute their unique perspectives. At Newmont, we value each individual, encouraging peak performance and a collective...

  • Director, Commercial

    2 weeks ago


    Canada TECO Energy Inc. Full time

    Press Tab to Move to Skip to Content Link Select how often (in days) to receive an alert: Our people are our greatest investments. Tampa Electric offers competitive pay, acomprehensivebenefitspackageand opportunities for growth and development in a friendly and professional work environment.We embrace diversity and the inclusion of all. We're honored to...


  • Canada Combined Insurance Full time

    Chubb est un leader mondial de l'assurance. Présente dans 54 pays, Chubb offre des assurances de dommages personnelles et commerciales, des assurances accident-maladie complémentaires pour les particuliers, ainsi que de la réassurance et de l’assurance vie à une grande variété de clients. Notre compagnie se distingue grâce à un large éventail de...


  • Canada Shopify Full time

    About the roleFinance's mission is to help support Shopify's growth over the long-term and ensure we achieve our objective of making commerce better for everyone. We are trusted advisors and growth partners to the business, always striving to learn, provide insights, solve complex problems and contribute positive impact. Finance also plays an important role...


  • , AB, Canada Lloyd Sadd Insurance Brokers Full time

    As our Director of Commercial Service, you will be responsible for leading and developing a team of service managers who are responsible for delivering exceptional client experiences. You will drive innovation in client and employee experience with a focus on collaboration and fostering positive relationships with commercial advisors and clients alike. In...


  • Canada Scotiabank Full time

    Provides strategic direction and leadership for employee health, wellbeing and leaves, aligned with the Bank's talent, financial, and inclusion strategy Direct the research, design and development of the Bank's benefit programs globally, consistent with the Bank's business and total rewards objectives, with particular focus on cost management, wellness,...

  • Credit Underwriter

    4 weeks ago


    Canada Scotiabank Full time

    Requisition ID: 169465 Join a purpose driven winning team, committed to results, in an inclusive and high-performing culture. **Credit Underwriter - Commercial Banking** The Credit Underwriter is responsible for contributing to the profitable growth and quality of the Bank’s Corporate & Commercial Credit portfolio by performing financial solutions...


  • Canada Univar Full time

    Press Tab to Move to Skip to Content Link Select how often (in days) to receive an alert: Create Alert Select how often (in days) to receive an alert: Company Name: Univar Solutions Canada LTD Requisition ID: 30520 A Place Where People Matter Start your career journey today with Univar Solutions Here you can make an impact on the world around you and...


  • Alberta, Canada, Canada Lloyd Sadd Full time

    THE ROLEAs our Director of Commercial Service, you will be responsible for leading and developing a team of service managers who are responsible for delivering exceptional client experiences. You will drive innovation in client and employee experience with a focus on collaboration and fostering positive relationships with commercial advisors and clients...


  • Canada Onni Group Full time

    As we get ready to launch an exciting new project in Chicago, we are in need of an experienced and dynamic General Manager to oversee operations at a top-notch 32-story commercial property spanning 850,000 square feet. The General Manager's role is crucial in ensuring the smooth management and top-notch service delivery of the property, including tenant...


  • Canada Stonewood Group Inc. Full time

    Our client is an award-winning Canadian corporation that delivers a comprehensive range of technical and strategic services to customers around the world. Our client is widely recognized for its ability to bridge the gaps between research and innovative technologies, and between engineering and reliable operations. The firm is particularly known for working...