Huge Growth Potential
Underpinned by APAC’s large market size and ageing population
Pro-Growth Policies
Governments are boosting the development of homegrown firms and technology
Boosting R&D Capabilities
Proliferation of R&D facilities and research projects
Occupier Strategy
Occupiers are seeking to optimize every aspect of their portfolios – from corporate offices, R&D laboratories, logistics and manufacturing
Investing in Life Sciences Real Estate
Focus on sale and leaseback opportunities from end users or public private partnership of life sciences facilities development
Huge Growth Potential in APAC Life Sciences
Source: Oxford Economics, May 2021
HEALTH EXPENDITURE & % of GDP, 2018
United States: US$ 3475 billion; 17% of GDP
VALUE OF EXPORTED DRUGS AND MEDICINES, 2019
HEALTH EXPENDITURE PER CAPITA
Source: WHO; 2018 data; Current health expenditure by revenues of health care financing schemes; Hong Kong Food and Health Bureau
United States: US$ 10,624 / capita; 4.1% -y-o-y
Source: Central Intelligence Agency, 2019 data
United States: US$ 24.3 billion
Note: Many Chinese life science companies are listed in Hong Kong SAR or the US Source: Capital IQ, June 2021
More home-grown life sciences companies in APAC
Total revenue of listed life sciences sector in Asia Pacific by location of headquarters
(US$ million)
China
Japan
India
Hong Kong SAR
South Korea
Australia
Indonesia
Taiwan
Thailand
Singapore
301,087
192,494
39,782
36,753
35,395
20,104
4,189
3,893
2,822
385
Asia Pacific is catching up on R&D Capability
Source: https://www.natureindex.com, May 2021 The Nature Index is one indicator of institutional research performance. The metrics of Count and Share used to order Nature Index listings are based on an institution’s or country’s publication output in 82 natural-science journals, selected on reputation by an independent panel of leading scientists in their fields.
Nature Index – Life Sciences Number of research papers published
United States
United Kingdom
Korea
New Zealand
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Growth (2016-2020)
4.1%
6.5%
16.2%
1.2%
7.9%
8.0%
6.0%
5.9%
2016
2017
2018
2019
2020
Number of research papers published in natural-science journals
Approaches to Investing in Life Science Real Estate
Sales Leasebacks and Disposals
Engage pharmaceutical companies keen to conduct sale leasebacks or dispose of assets to improve balance sheets
Reposition aged light industrial properties into laboratories or cold storage
Asset Conversion
Public-private Partnerships
Target development opportunities in newly planned science parks through government partnerships or land tenders
Asset Development
Develop build-to-suit facilities with pharmaceutical companies
Target Markets
Japan Australia Korea
Mainland China India Singapore Japan Korea
Hong Kong SAR Japan
APAC major markets
CBRE has evaluated the competitiveness of major markets in Asia Pacific based on the following criteria:
Pharmaceutical Logistics
Manufacturing Facilities
RESEARCH & DEVELOPMENT
Corporate Office
Increasing demand for high specification facilities Enhancing distribution networks and final mile efficiency is a key occupier focus Demand for high quality facilities and occupier stickiness make assets investment- worthy despite smaller size requirements
More facilities cater to domestic demand and speed to market New plants for vaccine production planned for Singapore, China, Australia and Korea
Corporate office leasing by life sciences firms in Asia Pacific rose 16% y-o-y in 2020 Many occupiers adopting activity-based working and hybrid work models
Growing number of R&D lab facilities in science parks across the region Mostly government owned or linked to preferential policies to grant land to end-users Gradual emergence of co-labs and incubator programmes to support start-ups
Occupiers should target suitable facilities or collaborate with owners to enhance assets
Occupiers are advised to leverage government incentives to strengthen R&D capabilities
Tenants are recommended to review manufacturing facility networks and scale up capacity
Tenants can capture current leasing market weakness to optimise portfolios before a full recovery
