C&W Life Sciences Golden Triangle Lab Report Q4 -2022

INVESTMENT MARKET

2022 saw a strong first half, which accounted for 60% of the year’s total investment volume (by value). H2 volumes dipped as a result of macro economic headwinds and total investment volumes for 2022 reached in excess of £2.45 billion. Although below 2021’s investment volumes, the 2022 total remains above prior years. As a result of these macro economic factors, Golden Triangle prime yields have shifted outwards to 4.25% at the end of 2022. In contrast to historic investment trends in the life sciences sector, 2022 saw more value add, development and repurposing activity, demonstrating the lack of available stock, with investors moving further up the risk curve to achieve exposure in the sector by delivering best in class life science assets.

INVESTMENT VOLUMES

£1,200m

£1,000m

£800m

£600m

£400m

£200m

PRICING INITIAL YIELDS (%) Asset Location Q3-22

INVESTMENT VOLUMES

£0m

Q1-2021

Q2-2021

Q3-2021

Q4-2021

Q1-2022

Q2-2022

Q3-2022

Q4-2022

PERIOD

Q4-22

Outlook Outward

Prime

3.75 - 4.00%

4.25%

Source: Cushman & Wakefield

Secondary

4.75 - 5.00%

5.25 - 5.50%

Outward

Q4 DEAL WATCH

COMPLETED

Type

Date

Price

Size

Yield Vendor

Purchaser

GSK Park Road, Ware Windrush Court, Oxford

Refurbishment

Nov-22 £13m

345,000 sq ft N/A GSK

Global Mutual

Income

Nov-22 c.£60m 75,000 sq ft

5.46% Oxford Biomedica Kadans Science Partners

GSK R&D Campus, Stevenage 163 Cambridge Science Park

Land Development Nov-22 Confidential

33.16 acres

N/A GSK

UBS / REEF Group

Land Development Dec-22 £12.17m 0.89 acres

2.23% Norwich CC

Stanhope / Cadillac Fairview

UNDER OFFER Hinshelwood Building, Oxford

Conversion

Dec-22 (Quote) £20m 75,000 sq ft

3.75% Mayfair Capital

TOSP / GIC

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