Jim Yip, former China head of capital market for JLL, became one more player to jump on the bandwagon of investing in life science real estate in China.
Earlier last month before the Shanghai city closed down for the new wave of Covid infection, he together with a large ” New Economy real estate champion ” institution, bought a life science campus in Zhangjiang pharma valley.
Life science properties have recently become a hot investment asset class in China , with a slew of investors like Gaw Capital, Warburg Pincus, APG, CBC , Hillhouse and Sequoia have announced deals or raised new funds to target this sector. Just in last week DNE has announced a JV with an Asian sovereign fund setting up a USD 1.2bn China life science real estate fund.
“I have already foreseen this trend would be coming earlier last year, ” Jim Yip, co-founder of Elixir Life Science Real Estate Co, ” There is once in a life time opportunity for building a real estate business. ”
ACGT Park, which is the re-branded name for their building in Zhangjiang, is already home to 8 bio-tech tenants carrying out lab testing and research activities in the building.
“I like this asset very much.” said Jim, ” It is right in the heart of China’s most innovative drug research hub. ”
Five years ago when Jim was at Cushman, he sold the building to a hotel investor, whose plan was to reposition it into a hotel. The hotel plan didn’t work out and the building sold to Yango , a local residential developer and Yango turned it into a life science campus.
“Dr. Jin is one of our 3 co-founders of Elixir, ” said Jim, “He bought the property when he was head of acquisition for industrial park at Yango.”
Dr. Jin oversaw all the building re-configuration work and leasing process after acquiring the building.
“When I started out my new platform and looked for partners, I recalled this ACGT Park and reconnected with Dr. Jin who also resigned from Yango, says Jim, “What a co-incidence, it is nice to bring the trophy home.”
The acquisition will definitely build the momentum for developing Elixir Life Science, an operator platform focusing in life science real estate which currently there isn’t much competition in the field.
“One of our key differentiations with our peers is that we are providing a vertical-integrated service for our industry tenants. We are not only taking care the whole life cycle of the asset but also the tenants, where they can be providing much greater value if you can do it right. This is the beauty of being vertical in one particular sector. ” said Jim.