Why invest in the Life Sciences sector?

The life sciences sector emerged as a critical investment frontier in 2024, but what makes it so compelling to investors?

The UK government's £400 million public-private investment programme announced back in August signals a transformative moment for the industry and aims to position the UK as a global epicentre of health research.

For investors such as ourselves, the sector offers a unique value propositions.

- Government support: The government's commitment demonstrates robust support for innovation, and tenants often have substantial backing from venture capital, ensuring financial stability.

- Long term tenants: Life sciences companies typically invest heavily in spaces to meet regulatory and operational needs. This makes them less likely to relocate.

- Life sciences hubs are often positioned close to universities such as Cambridge, meaning they benefit from high demand and limited supply, making them more attractive for investment.

- Impactful investing: Not only does the sector play a crucial role in addressing global health challenges and makes a positive contribution to the health of our population it also creates an opportunity for the repurposing of aging industrial assets into modern, energy efficient buildings thus preserving embodied carbon.

Barwood's Regional Property Growth Fund V (GFV) recently acquired, in partnership with GenTwo, a two income producing laboratories let to Alchemab Therapeutics and Constructive Bio, as well as two adjoining industrial warehouses totalling 38,500 sq ft, with a view to reconfiguring these units into best in class, fitted laboratory space.  See the full press release here.

Cover images by Polina Tankilevitch and Pixabay via Pexels.