Published 28 Apr.2023 10:16(KST)
Updated 21 Jul.2023 13:58(KST)
The sovereign wealth fund Korea Investment Corporation (KIC) organized a forum where Korean institutional investors and local experts in the UK gathered to discuss investments in life science real estate.
KIC announced that its London office hosted the 21st London International Financial Cooperation Council on the afternoon of the 27th (local time).
The meeting was attended by over 30 investment officials from the government, public investment institutions, securities firms, banks, and insurance companies, including the financial attach? of the Korean Embassy in the UK. The topic of the meeting, life science real estate, refers to research facilities and offices used in the life sciences sector. Major tenants include pharmaceutical, bio, and medical device companies, as well as research institutions.
Although there were concerns that demand for office facilities would decline due to the spread of work from home after COVID-19, the life science industry requires experimental equipment, making remote work difficult. For this reason, it is attracting attention as an alternative investment destination.
Emma Goodford, a partner at global real estate consulting firm Knight Frank, who gave a presentation that day, said, “Due to the nature of the life science industry, it is difficult to move research equipment installed in offices or laboratories, so related real estate has long lease terms and stable rental demand,” adding, “Rental prices are also rising significantly due to increased demand.”
She stated, “The life sciences industry is rapidly growing, and investment is accelerating not only from the public sector but also from the private sector due to the impact of the COVID-19 pandemic,” and added, “However, locations suitable for the bio, pharmaceutical, and medical device industries are limited, so their value is increasing.” She also emphasized the uniqueness of the UK market.
She continued, “Since the life sciences field is research-centered, investments are actively made in areas advantageous for talent supply from nearby universities,” adding, “The ‘Golden Triangle,’ where major UK universities such as London, Cambridge, and Oxford are located, is a representative example.”
Park Jin-sung, head of KIC’s London office and organizer of the event, said, “The UK is a country leading the global life sciences industry following the US, and life science real estate investment will contribute to portfolio diversification in the future,” adding, “We will actively organize opportunities to understand market trends and establish more advanced investment strategies going forward.”
KIC has overseas offices in global financial hubs (New York and San Francisco in the US, London in the UK, and Singapore). It strives to share overseas investment information and build mutual cooperation systems with domestic public and private financial institutions operating locally.
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