Ivanhoe Cambridge, a real estate subsidiary of Canada’s institutional fund manager CDPQ, has made a foray into Hyderabad’s Genome Valley and committed to invest $100 million to develop nearly one million square feet of labspace in the life sciences cluster.
Telangana Industries and IT Minister K.T.Rama Rao’s office said this in a statement after the leadership of Ivanhoe Cambridge and Lighthouse Canton met the Minister and senior officials, including Industries and IT Secretary Jayesh Ranjan, virtually on Wednesday.
Separately, a release from Ivanhoe Cambridge said it is acquiring a portfolio comprising 0.85 million sq ft life science research and development office-labs in MN Park, Genome Valley, alongside Lighthouse Canton, which is the existing asset manager.
The Minister’s office said Ivanhoe Cambridge and Lighthouse Canton aspire to contribute to the growth of the R&D sector in Hyderabad by investing about $100 million for developing one million sq ft of laboratory space “thereby creating more R&D and allied life sciences infrastructure over a period of time.”
Ivanhoe’s investment in MN Park is in line with the firm’s global strategy of focusing on sectors that foster innovation and long-term growth fundamentals. It is one of the first such transactions by a pension fund in life sciences real estate segment in South Asia. An investment of this nature reinforces the leadership position of Hyderabad in life sciences sector.
Describing it as a boost to the government’s focus on the life sciences sector, the release said Genome Valley is India’s first and largest cluster for life science R&D and clean manufacturing cluster housing more than 200 life sciences companies. Mr. Rao said he was delighted to announce the entry of Ivanhoe Cambridge in Genome Valley through MN park with an investment commitment of $100 million for creation of about one million sq ft labspace.
“This new investment in MN Park allows us to reinforce our conviction in life science real estate, a key focus area of our diversification strategy into high growth, innovation-focused sectors”, said Chanakya Chakravarti, Managing Director, India, at Ivanhoe Cambridge.
The firm said MN Park is India’s largest privately owned portfolio of leased life sciences R&D office labs. It offers fully fitted lab spaces, incubation facilities, storage spaces, office spaces, large open recreational spaces and a host of amenities occupied by global and domestic credit tenants operating strategic R&D facilities.
The MN Park portfolio is occupied by over 20 global and domestic pharma and bio-tech companies, vaccine manufacturers and contract research organisations. It will receive investment from Ivanhoe Cambridge and Lighthouse Canton in an 80:20 ratio respectively. The initial focus will be on consolidating the portfolio with select value accretive acquisitions in relevant life science R&D clusters in India. The transaction also includes completion of development on identified land options within the portfolio to cater to tenant expansion requirements.
