Life Science Portfolio

Background:
The mandate of a German institutional investor requires the investment goals of stability with low risk, attractive running cash return, and upside potential. Unfortunately, these are usually competing targets. It takes special market insight and the right timing to uncover the hidden gems which fulfill all these criteria.

Implementation:
To combine all these parameters and not overpay in the current market situation, GalCap Europe applys a strict off-market strategy in this mandate. We establish direct access to potential sellers and find assets that are underappreciated and on which others simply do not focus. The concept of intrinsic value plays a vital role in this process.

Bio & Life Science in Vienna was identified as an attractive niche product. Vienna ranks amongst the most important and dynamic scientific research hubs in Europe, where the demand for suitable real estate is growing and the available offerings are limited. By way of our personal network, GalCap Europe secured a portfolio of two well-established properties in this segment:  Vienna BioCenter II and Vienna Competence Center. Both assets enjoy truly outstanding micro locations. The whole Campus Vienna BioCenter, located in Vienna’s 3rd District, hosts approx. 2,100 researchers and students in 90,000 sqm of dedicated leasable space. About 20 research institutes and companies are already located in this area. Vienna Competence Center is in the immediate vicinity to the Allgemeines Krankenhaus der Stadt Wien (AKH), the largest university hospital in Austria and one of the largest in Europe.

Both properties are fully leased to research-related occupiers and benefit from extraordinarily loyal tenants. In this case, short remaining lease terms and indefinite lease contracts are considered manageable risks, mitigated by GalCap Europe’s active asset management.

Conclusion:
The scientific research industry is growing in Vienna. GalCap Europe can acquire outstanding micro locations at reasonable prices before others take notice of them. Stability, attractive cash returns, and potential for further value uplift can be combined, even in Vienna, if the right approach is applied.