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1、Life Sciences Industry&Real Estate Perspective 2024Putting Asia Pacific under the microscopeResearchAsia PA foreword from the Life Sciences 3 Speciality Group Chair,Asia Pacific Key takeaways 5Navigating this report 1.Demographics reinforce the 8 long-term outlook2.The increasingly attractive nature
2、 of 10 life sciences3.The need for data and transparency 134.Addressing the lack of life sciences 15 supply5.Clusters are the beating heart of the 16 sector,fuelling growth and sparking inspirationHow do the 2024 life sciences 19 clusters stack up?Where are the opportunities in this turbulent time?F
3、or real estate investors 41For real estate companies 43What does it all mean?44Contents2Life Sciences Industry&Real Estate Perspective 2024In todays ever-changing business landscape,leaders in the life sciences industry understand the importance of reflection and learning from the past to shape futu
4、re successes.The global environment is characterised by geopolitical tensions and a turbulent macro-economic climate,resulting in heightened uncertainty affecting areas such as spending,inflation,and the cost of capital.However,amidst this dynamic landscape,the life sciences industry in the Asia Pac
5、ific region plays a pivotal role,driven by demographic shifts such as an ageing population and increasing healthcare needs.Governments across the region actively support and develop the industry,recognising its significance for the future.A foreword from the Life Sciences Speciality Group Chair,Asia
6、 PacificWhile life sciences may not garner as much attention as major technology stocks,momentum is building,and its potential remains strong.Investment volumes in life sciences real estate in Asia Pacific have experienced substantial growth,with over US$1.6 billion worth of transactions in 2021 com
7、pared to US$149 million in 2018.While these figures may be lower than in the US,the region offers significant investment opportunities,particularly for those seeking diversification and stability.2022 saw a dip in investor appetite,although positive signs of a rebound were clear with news announceme
8、nts from Actis(UK Private Equity)unveiling plans to invest over US$700 million in life sciences real estate assets in India,and PGGM(Dutch pension fund)&Lendlease(Australian Real Estate Group)investing in innovation and life sciences space across Australia,Japan and Singapore.Historical challenges f
9、aced by investors in Asia Pacific,such as limited data and market entry complexities,are gradually easing.This paves the way for new opportunities,as more capital is being deployed to life sciences across the region than ever before.The look back,look ahead section of the report provides detailed in
10、sights,including a summary of investment metrics across the 10 most prominent clusters.Life sciences companies are pursuing diverse strategies,ranging from cautious waiting to 3Life Sciences Industry&Real Estate Perspective 2024Contents bold investment and growth approaches.However,fortune favours t
11、he brave in the current business landscape.Taking decisive action now can yield significant returns in the future.To succeed in the Asia Pacific life sciences industry,which represents the new frontier for business growth,perseverance and strategic partnerships are essential.Whether a national pharm
12、aceutical company expanding globally or a multinational medical devices corporation,decisive action is key.As a specialist in life sciences real estate,it is vital to grasp the intricate interplay of these factors.By capitalising on demographic trends,leveraging government initiatives,and adapting t
13、o the evolving technological landscape,industry leaders can seize opportunities,navigate uncertainties,and drive success in this ever-evolving market.Recognising the strong interconnection between life sciences companies and investors,we have established a dedicated speciality group for the Asia Pac
14、ific region,leveraging our extensive experience and expertise across JLL.Earlier this year,we formed this group to create a cohesive network of life sciences practitioners,aligned with our colleagues from the Americas and EMEA regions.This global connection empowers us to deliver comprehensive solut
15、ions and insights to our life sciences clients.Our integrated approach ensures seamless collaboration and exchange of best practices,enabling us to navigate the complex and evolving landscape of the industry across different regions to benefit our clients.Ross BallantyneChair,Asia Pacific Life Scien
16、ces Speciality Group JLLLets unlock the potential of the life sciences industry together.Get in touch with us today to explore the opportunities4Life Sciences Industry&Real Estate Perspective 2024Contents Key takeaways1 1 Given that over 50%of the global population resides in Asia Pacific and the pr
17、ojected increase in the ageing population(people aged 65 or older)will be nearly half a billion by 2025,the healthcare landscape in the region is poised for rapid expansion.This demographic backdrop sparked heightened action in the industry which is now building momentum.The ongoing demographic shif
18、ts provide confidence that the sector will continue to thrive and demonstrate resilience in the long term.Despite the continued challenges relating to the life sciences real estate focus being in its infancy in the region,it is evolving and maturing at a significant pace,providing favourable conditi
19、ons for investment and growth.2 2 Investment volumes in life sciences remain resilient given the current macro-economic environment,with YTD 2023 figures(as of Sep)surpassing the FY 2022 figures.The industry continues to attract significant interest from investors with its strong occupier demand,sta
20、ble rental income,and relatively higher yields,to provide a protected investment avenue.According to a survey conducted by JLL,over 70%of investors active in the life sciences sector have indicated that they expect to increase their assets under management(AUM)in this sector.This reflects the positi
21、ve sentiment surrounding the industry and the recognition of potential growth and income opportunities it presents to investors.5Life Sciences Industry&Real Estate Perspective 2024Contents 3 3 The availability of comprehensive real estate data has historically been limited,making it challenging to a
22、ssess market trends and demand accurately.However,there has been notable progress in recent years,and we are now in a better position to understand yields and performance metrics within key life sciences clusters.This enhanced data availability enables more robust comparisons with alternative invest
23、ment options,allowing investors to make well-informed decisions based on solid market intelligence.Leveraging data has become a core driver of success for life sciences real estate as it enables stakeholders to gain a thorough understanding of market dynamics and capitalise on emerging opportunities
24、.4 4 The rising demand for specialised life sciences real estate is driving innovation on the supply side.As requirements for space evolve,it is crucial investors and occupiers are more connected than ever before to meet the surge in demand effectively.The current macro-economic climate presents a r
25、ange of new opportunities that may not have been previously considered.Companies are exploring strategies such as sale and leaseback which offer lower barriers to entry for investors and unlocks capital for occupiers.Additionally,the evaluation of build-to-suit and asset conversion strategies is on
26、the rise.However,it is important to note that not all strategies suit every location,and careful evaluation of the feasibility and suitability of these approaches must be conducted.5 5 Clusters are indispensable for the advancement of the life sciences industry in the Asia Pacific region.They serve
27、as a catalyst for collaboration,enabling synergies among industry players,research institutions,and supporting entities.This collaborative environment fosters knowledge sharing,accelerates innovation,and facilitates the exchange of ideas and resources.It is essential to recognise that each cluster i
28、n the Asia Pacific region possesses its unique characteristics and advantages.Given the vast and diverse nature of the region,understanding the local nuances is critical.Ranking clusters in terms of priority is not practical,as each cluster offers its own set of opportunities and strengths.A thoroug
29、h understanding of the local landscape,market dynamics,and government policies is crucial for successful investments and business operations.6Life Sciences Industry&Real Estate Perspective 2024Contents Navigating this reportOur latest perspective has been specially crafted to give you a comprehensiv
30、e understanding of the past,present,and future of the life sciences industry in the Asia Pacific region.We provide insights into key research themes,examining opportunities for both investors and life sciences companies.Through this publication,we aim to equip you,with a well-rounded perspective,ble
31、nding historical context,current insights,and a forward-looking approach.This comprehensive analysis will help you navigate the opportunities and challenges within the Asia Pacific life sciences real estate market.The report draws inspiration from our recent publication titled 2023 Life Sciences Ind
32、ustry and Real Estate Perspective-Assessing the future landscape for biopharma,medtech,and biomanufacturing in the Americas.It exemplifies how teams throughout the global JLL network collaborate in this specialised and pivotal industry.7Life Sciences Industry&Real Estate Perspective 2024Contents 1Lo
33、ok backThe demographics of the Asia Pacific region are well-known with its population of 3.7 billion people,of which nearly 25%are aged 65 or over.But to demonstrate the potential you need to couple these statistics with the fact that the region accounts for more than 45%of global GDP combined these
34、 factors create strong foundations for high growth potential in the future.While the market for life sciences services in Asia Pacific has experienced rapid maturation,the real estate needed to support the expansion has not kept pace with this trajectory.This reality has Demographics reinforce the l
35、ong-term outlookbeen further emphasised by the emergence of the global pandemic,regional lifestyle changes,the demographic shifts highlighted previously and increased access to healthcare solutions due to rising wealth.The growth potential has been recognised by local players,start-ups,and multinati
36、onal companies alike,leading to a significant influx of pharmaceutical and medical device companies in the region.The transition from an emerging sector to an integral part of the economy presents new and unique challenges for the required real estate,especially with demand constantly outstripping s
37、upply.Figure 1Health expenditure by countrySource:WHO201820192020ChinaJapanAustraliaSouth KoreaIndiaIndonesiaThailandNew ZealandSingapore00500600700800900USD billion8Life Sciences Industry&Real Estate Perspective 2024Contents Look aheadAsia Pacifics demographics and the rapid growth of th
38、e middle class create a region of great promise.This optimism points towards the development of a thriving specialist real estate market that is poised for sustained expansion.Looking ahead,projections indicate that the region will contribute an astonishing 40%of global healthcare growth in the next
39、 decade.According to KPMG,compound annual growth rates are expected to remain in the high teens,highlighting the immense potential for future success.Furthermore,by 2050,Asia Pacific is forecasted to comprise almost two-thirds of the worlds population,and over 60%of the global ageing population,pres
40、enting enormous opportunities for the future.In this captivating landscape,life sciences companies in Asia Pacific are on the cusp of significant expansion.Key hotspots such as Singapore,Japan,Seoul,Shanghai,Beijing,Hong Kong,and Australia emerge as vibrant catalysts for transformative growth.These
41、locations,boasting proximity to prestigious universities,serve as thriving hubs that attract investments and foster innovation.For deeper insights,explore the cluster reports on page 19.Figure 2Population ages 65 or aboveSource:World Bank2030F2040F20232050FChinaJapanAustraliaSouth KoreaIndia05010015
42、0200250300350400450Population(million)9Life Sciences Industry&Real Estate Perspective 2024Contents 2Look backThe life sciences industry has garnered significant attention even before the pandemic,but the crisis further emphasised its importance.As remote work and hybrid models increased office vacan
43、cy rates,investors became even more attracted to life sciences real estate,thanks to its stable income returns,potential for higher yields,and resilience to the impact of COVID-19.One intriguing aspect of life sciences is how companies view real estate as critical infrastructure essential to their o
44、perations.This unique perspective leads to longer-term commitments,with lease terms often exceeding The increasingly attractive nature of life sciences10 years,as tenants heavily invest in customising facilities to ensure they are fit for purpose.Looking at cumulative investments over the years,ther
45、e was a notable surge in 2021,with institutional investors acquiring more life sciences assets in Australia,China,and Japan.As the macro-economic climate shifted to a period of higher inflation and interest rates,the trend paused in 2022.However,2023 has witnessed a resurgence of activity primarily
46、driven by China with the focus on business parks.The YTD 2023 life sciences volumes(as of Sep)have already surpassed those of 2022,bucking the trend of declining volumes in the overall CRE market.Figure 3Life sciences investment volumes by geographyFigure 4Investment volumes by asset typeAustraliaCh
47、inaJapanSouth KoreaAPAC others20000022YTD23USD million05001,0001,5002,000Business parkLogisticsManufacturingR&D lab20000022YTD23USD million05001,0001,5002,00010Life Sciences Industry&Real Estate Perspective 2024C
48、ontents Look aheadThe positive sentiment towards life sciences is evident through numerous articles and attention-grabbing numbers dominating the headlines(see next page).Many are now recognising the tremendous potential and taking decisive action through bold moves and strategies.Despite the potent
49、ial,life sciences companies and investors are facing challenges in finding buildings that meet the specific requirements in several countries across the region.Not all locations are adequately equipped to meet the anticipated future demand for specialised spaces.For example,Japan,South Korea,Hong Ko
50、ng,and Singapore lack sufficient space,while India is experiencing a surplus of life sciences real estate due to its rapid development.On the other hand,both China and Australia possess a healthy amount of life sciences stock to cater to future demand.Take a look at the fourth trend to discover how
51、this issue is being overcomeFigure 5Demand-supply dynamicsSource:JLLIndiaAustraliaChinaJapanSouth KoreaHong KongSingaporeEase of meeting space requirementsExpected future demand for space11Life Sciences Industry&Real Estate Perspective 2024Contents Australias$250 billion life science boom is giving
52、rise to a real estate gold rushT.auSeptember 2022CapitaLand unveils S$1.4 billion“Geneo”life sciences and innovation cluster in latest phase of Singapore Science Park rejuvenation.CapitaLandJune 2023Life science property investors in China expect steady growth as R&D spending spurs demand for lab sp
53、aceSouth China Morning PostApril 2023CBC Healthcare secures$875 million for life science investment in China.ReutersOctober 2023Look ahead 12Life Sciences Industry&Real Estate Perspective 2024Contents 3Look backThe growing significance of life sciences in the Asia Pacific region had been widely reco
54、gnised for some time,but the COVID-19 pandemic further accentuated its importance.However,the relatively nascent stage of development in the sector brought forth a distinct challenge the scarcity of readily accessible and consolidated information.Unlike more mature real estate asset classes,laborato
55、ries and R&D facilities in Asia Pacific lack a centralised repository where comprehensive data can be found and shared.This lack of The need for data and transparencyinformation hampered the ability of stakeholders to conduct thorough due diligence and make well-informed decisions regarding real est
56、ate investments.Look aheadInvestors in the Asia Pacific region recognise the unique characteristics of the life sciences sector,which make it an attractive investment opportunity.Although there is still no centralised location to store and develop all data,it is increasingly being captured by differ
57、ent stakeholder groups and the next step is for those groups to come together to share.This collaborative effort should involve real estate experts,data providers,industry associations,and governments.Establishing comprehensive databases that are specifically tailored to the unique requirements of l
58、ife sciences is a critical step.13Life Sciences Industry&Real Estate Perspective 2024Contents Additionally,improving data collection methods and ensuring the accuracy and reliability of information provided will enhance the decision-making process in this sector,ultimately benefitting investors and
59、the industry as a whole.Whilst we arent there yet it is great to bring our findings to share with the sector.As you can see in the table-while traditional research and development(R&D)offices may yield returns comparable to Grade A offices,business parks focused on life sciences often command higher
60、 yields,closer to industrial.Life sciences investments offer stable occupancy levels and diversification benefits to investors.Yields for life sciences assets can vary by city and type,but generally command higher yields than traditional office assets.Cities like Shanghai,Sydney,and Melbourne have e
61、stimated yields in the range of 5.5%-6.0%.Bangalore and Hyderabad offer higher yields of approximately 8.0%to 8.5%.Table 1Property yields across life sciences clustersSource:JLLCityGoing-in yieldCost of debtLoan-to-value ratioCash-on-cash yieldMelbourne5.50%-6.00%6.10%40%-50%4.90%-5.90%Sydney5.50%-6
62、.00%6.10%40%-50%4.90%-5.90%Beijing6.50%-7.00%5.00%30%-50%8.00%-9.00%Shanghai5.50%-6.00%5.00%30%-50%6.00%-7.00%Hong Kong3.25%-3.75%6.73%40%-50%-0.23%-0.77%Bangalore8.00%-8.50%8.96%55%-65%6.56%-7.81%Hyderabad8.00%-8.50%8.96%55%-65%6.56%-7.81%Tokyo3.75%-4.25%0.77%60%-65%8.22%-9.47%Seoul4.25%-4.75%6.00%
63、55%-60%1.63%-2.88%Singapore5.50%-6.00%4.90%50%-55%6.10%-7.10%14Life Sciences Industry&Real Estate Perspective 2024Contents 4Look aheadThe growing demand for life sciences space,coupled with the limited availability,has created a scenario where investors and occupiers can collaborate to overcome the
64、challenges.By forming strategic partnerships,such as joint ventures or development agreements,both parties can leverage their expertise and resources to navigate the intricate landscape of life sciences real estate.In this environment of increased capital costs,partnering allows for shared financial
65、 burden and risk mitigation.By combining forces,investors and occupiers can pool their resources to secure and Addressing the lack of life sciences supplydevelop life sciences properties,enabling them to capitalise on the burgeoning market demand.These partnerships not only address the challenge of
66、limited availability but also facilitate the expansion of the life sciences industry by providing the necessary real estate infrastructure for research,development,and manufacturing activities.By seizing these opportunities,investors and occupiers can position themselves advantageously in the dynami
67、c and evolving life sciences real estate market.Its important to note that not all strategies are relevant to each cluster,and the table(right)highlights where we think the greatest opportunities present themselves.Table 2Opportunities across life sciences clustersCitySale&leasebackAsset conversionB
68、uild-to-suitPPPMelbourneSydneyBeijingShanghaiHong KongBangaloreHyderabadTokyoSeoulSingaporeSale&leasebacks:Core investors without specialised expertise can engage in sale and leaseback arrangements with life sciences companies to secure long-term rental income streams.Asset conversion:Value-add inve
69、stors can identify opportunities to convert and upgrade existing properties,such as repurposing old industrial buildings into specialised life sciences R&D facilities.Build-to-suit:Investors with specialised expertise can partner with life sciences companies to develop customised build-to-suit facil
70、ities that meet their specific R&D needs.Public-private partnerships(PPP):Collaborating with local governments through PPPs can target development opportunities in newly planned business parks and other life sciences hubs.15Life Sciences Industry&Real Estate Perspective 2024Contents 5Look backCluste
71、ring is a fundamental pillar in the dynamic landscape of the life sciences industry,and its importance resonates strongly in regions such as the Americas,EMEA,and the ever-evolving Asia Pacific.The formation of these clusters is contingent upon multiple factors,including the availability of exceptio
72、nal talent,robust funding sources,supportive government policies,and the presence of purpose-built real estate infrastructure.These elements coalesce to Clusters are the beating heart of the sector,fuelling growth and sparking inspirationcreate the ideal environment for life sciences companies to th
73、rive,innovate,and drive groundbreaking advancements.As we reflect,the key clusters in the Asia Pacific region may appear unchanged on the surface,but a closer examination reveals the intriguing progression and maturation within each cluster.To illustrate this concept,let us consider Shanghai as a pr
74、ime example.The local authorities in Shanghai have set an ambitious target of establishing a world-class biopharmaceutical cluster by 2025.In 2020,the official estimates valued Shanghais biopharmaceutical market at more than RMB 600 billion,and the city aims to propel this market to RMB 1 trillion b
75、y the end of 2025.The combination of high demand,favourable conditions such as policy support,system reforms,talent attraction initiatives,and continued capital investment have galvanised Shanghais potential for growth.16Life Sciences Industry&Real Estate Perspective 2024Contents SeoulTokyoShanghaiS
76、ingaporeHyderabadBeijingHong KongSydneyMelbourneBengaluruFigure 6Key life sciences clusters across Asia PacificLook aheadThe future of life sciences clusters across Asia Pacific appears to be highly promising.Countries such as China,Singapore,India,Japan,South Korea,and Australia have demonstrated a
77、 strong commitment to accelerating their investments and initiatives in order to develop robust life sciences ecosystems.To understand the factors contributing to their success,we explore the key fundamentals these clusters possess Innovation,Funding,Domestic Market,Government and Real Estate.Real e
78、state investment plays a significant role in supporting the growth of life sciences clusters given the requirement for purpose-built facilities,including laboratories,manufacturing spaces,and office spaces conducive to collaboration and innovation.17Life Sciences Industry&Real Estate Perspective 202
79、4Contents Looking ahead,we anticipate that life sciences clusters in the Asia Pacific region will seek to diversify their offerings.By expanding their focus to cover the entire value chain of life science R&D,from early-stage research to commercialisation,these clusters can provide a comprehensive e
80、cosystem that supports the development and commercialisation of life science innovations.The next section of the report examines the unique characteristics of the 10 prominent clusters across the region.18Life Sciences Industry&Real Estate Perspective 2024Contents Clusters are vital for the life sci
81、ences industry and a key consideration for investor and occupier strategies given the crucial role they play in facilitating collaboration,knowledge exchange and innovation.While the importance of clusters has been highlighted in North America and Europe,we are witnessing the maturity of unique and
82、evolving clusters across Asia Pacific.We have identified 10 clusters around the region which have been determined as the most advanced,owing to their strong fundamentals such as ecosystem,academic links,funding environment and robust infrastructure,favourable government,and state policies.Our in-dep
83、th analysis delves into the distinct characteristics and opportunities presented by these clusters,and conducted a comprehensive assessment of each with the high-level summary detailed in this section of the report.How do the 2024 life sciences markets stack up?Discover why life sciences clusters ar
84、e vital for the future of the industry in the Asia Pacific region.19Life Sciences Industry&Real Estate Perspective 2024Contents 2024 top life sciences clustersSydneyHyderabadMelbourneBengaluruBeijingSeoulShanghaiTokyoHong KongSingaporeLife Sciences Industry&Real Estate Perspective 2024Contents Life
85、sciencesMelbourneTalent Melbourne has a number of high-ranking universities.The University of Melbourne(UoM)consistently ranks as one of the top universities globally for the subject matters in life sciences and medicine.The state government has placed great importance on attraction and retention of
86、 top talent.It is a top destination for occupiers due to the diverse and deep talent pool.Funding Biomedical and biotech companies comprise almost one-fifth of start-ups in the state,which rely on the rich funding environment.Melbournes life sciences industry is a major beneficiary of Federal Govern
87、ment and state-level funding.Domestic marketAlong with a diverse and large economy,the Victorian economy also led other Australian states in 2022 in terms of population growth.It is forecast to continue its growth trajectory in the near term.InnovationAcademia leads innovation in the city and the Me
88、lbourne has one of the highest research outputs in the region.UoM is situated within Melbournes main life sciences precinct,known as Melbourne Biomedical Precinct(MBP).Monash University is another prestigious university with a strong focus on life sciences and is well-known for its research.It also
89、anchors another smaller cluster in the city.ManufacturingIt is already a well-established destination for advanced medtech and pharmaceutical product manufacturing and many companies look to set up their operations in the state due to its strategic advantages in development and commercialisation.The
90、 pandemic brought greater awareness for the need to boost domestic manufacturing and CSL are constructing a new vaccine development facility in the city.OutlookThe solid fundamentals surrounding the growth of the states economy,with the support of national as well as state-level policies and strong
91、infrastructure,are propelling Melbourne to a become a leading international life sciences hub.21Life Sciences Industry&Real Estate Perspective 2024Contents Melbournes life sciences hub is primarily purpose-built and owned by end users.Investors can partner with life sciences companies for build-to-s
92、uit projects to fulfil their real estate needs.Figure 16TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Melbourne22Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesSydneyTalent Sydney has a diverse international workforce and student population,and n
93、umerous universities providing life sciences education.The city also possesses a vibrant research community and access to hospitals and research institutions which can provide collaboration opportunities.Funding Sydneys life sciences industry has a variety of funding opportunities available for star
94、t-ups and research initiatives,particularly in terms of national government and New South Wales(NSW)Government policies.There are a number of venture capital firms which solely focus on the life sciences industry.Domestic marketNSW boasts Australias largest local economy and Sydney is Australias mai
95、n financial and business centre.Strong job creation in professional,scientific&technical activities.InnovationWith Federal Government and state-level support,life sciences start-ups in Sydney are expected to seize growth opportunities.There should be more innovation as the prime focus of the cluster
96、s and the government is translation of research into commercialisation opportunities.ManufacturingThe city has a strong life sciences ecosystem.However,an area for improvement is commercialisation of research.The citys clusters,particularly Macquarie Park Innovation District,do possess drug and vacc
97、ine manufacturing capabilities,which will be able to service the demand requirements of the domestic market.OutlookSydneys life science clusters are expected to gain more traction.The NSW Government has identified life sciences as one of six priority industries,and targets to increase the density of
98、 the start-up community,create jobs and to create a more robust and resilient economy.23Life Sciences Industry&Real Estate Perspective 2024Contents Sydneys life sciences sector is limited,but investors can engage in sale and leaseback opportunities and conversion of office space into R&D labs.Instit
99、utional investors are seeking exposure to the sector.Figure 15TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Sydney24Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesBeijingTalent Beijing has several leading universities in the life sciences and med
100、icine space.Tsinghua University and Peking University are both top-ranking in Asia for teaching and research capabilities in related fields.Funding Beijing has a vibrant start-up scene and ranks globally near the top in terms of unicorns(start-ups valued at US$1 billion+)in 2022.Various avenues of f
101、unding are available for life sciences start-ups looking to scale up.Venture capital interest in life sciences is strong in the city and the national government has introduced many supportive policies to drive industry growth,such as Healthy China 2030 and the 14th Five-Year Plan.Biotechnology has b
102、een identified as a strategic industry by both the city and national governments.Domestic marketChina is the second-largest pharmaceutical market in the world.It has the second-largest national population and the Beijing metropolitan area itself has a population of around 20 million.The enormous pop
103、ulation is one which is rapidly ageing and with a high incidence of non-communicable diseases.The vast potential patient population will see strong growth in demand for healthcare products,especially on the back of rising consumption capacity and health awareness.InnovationBiomedical enterprises are
104、 expanding rapidly in Beijing,benefitting from abundant skilled talent base,the industry cluster effect,as well as policy supports aiming to create world-class life sciences clusters.The city produces a great deal of research output in the field of life sciences and has a vast number of life science
105、 companies in the R&D space.ManufacturingChina is the worlds largest exporter of goods.In 2022,it exported almost US$7 billion in drugs and medicine.There is a vast number of companies in Beijings clusters which focus on the production of drugs and vaccines.OutlookThe life sciences industry in China
106、 has entered an accelerated development stage after the COVID-19 pandemic.Foreign companies have shown a willingness to license technologies to Chinese firms and research institutes,thanks in part to the size and dynamism of Chinas pharmaceutical market.25Life Sciences Industry&Real Estate Perspecti
107、ve 2024Contents Beijing is home to major life sciences companies located in business parks.Investors can explore opportunities through sale and leasebacks,asset conversions,and partnerships with life sciences companies.Figure 8TalentFundingDomestic marketInnovationManufacturing capacityLife sciences
108、 Beijing26Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesShanghaiTalent Fudan University and Shanghai Jiao Tong University are highly regarded in terms of life sciences.Shanghai is a magnet for talent and attracts skilled workers from across China.However,the rapid growth o
109、f the industry is outpacing its talent base and incentives have been introduced to entice overseas talent to return to the city.Funding In addition to the national supportive national government policies,the municipal government is offering direct financial support and attracting more companies to s
110、et up operations there to turbocharge growth.The venture capital environment is strong and investment into life sciences has risen in recent years.Shanghai has a major stock market,but the tighter IPO environment has posed challenges to domestic biotech companies looking to go public.Domestic market
111、Shanghai is Chinas largest city economy and second-most populous city.Situated at the heart of the Yangtze River Delta,its well-positioned geography will support future growth.Ageing population and rising health awareness are also translating to higher demand for healthcare and medical supplies.Inno
112、vationMany global pharmaceutical companies have their China HQs or research centres in Shanghai.Many domestic companies look to set up their operations there leading to an extremely strong life sciences ecosystem within Shanghai.The new focus on innovation will draw new domestic companies looking to
113、 leverage the strong ecosystem.ManufacturingThe citys 14th Five-Year Plan(2021-25)for the sector aims to grow biopharma-related manufacturing.The city has a high number of contract development and manufacturing organisations and has a strong production capacity.The city is well-connected to export p
114、harmaceuticals to other markets.OutlookChinas biotech industry is still in its infancy but the growth potential is promising in the medium term.Strong funding and supportive policies are expected to facilitate growth in the number of domestic life science companies being able to compete on the globa
115、l stage.27Life Sciences Industry&Real Estate Perspective 2024Contents Shanghai is aiming to become a world-class biopharmaceutical cluster,attracting life sciences companies to expand their presence in the city.Supply shortage of life sciences R&D properties accelerates the development of business p
116、ark areas to meet demand.Figure 9TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Shanghai28Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesHong KongTalent Hong Kong is highly concentrated in terms of its universities and boasts several leading insti
117、tutions for life sciences and medicine.In Asia,The University of Hong Kong and The Chinese University of Hong Kong rank 2nd and 6th,respectively,for the subject area in 2023.The city has an abundance of talent to satiate the industry.Funding The city is an attractive location for funding with a numb
118、er of government incentives in place to nurture growth,solid healthcare spending,and a strong venture capital presence.It is an attractive destination for companies looking to go public,especially in light of relaxed listing rules in 2018 for the new economy sector.In 2022,Hong Kong continued to per
119、form well in the global IPO market,with 90 new listings,and a significant portion coming from the new economy sector.Domestic marketHong Kongs demographics lend itself to strong healthcare consumer market.It ranks number one globally in terms of longevity,with a life expectancy of 85.8 years in 2023
120、.Its ageing populace and strong consumer market drive demand for healthcare despite its relatively small domestic population in comparison to other cities.InnovationThe city is part of the Greater Bay Area(GBA),which ranks among the worlds 100 most important science&technology clusters.There is a va
121、st number of life science companies situated in the Hong Kong Science Park and several INNOPARKs across the city which are at the forefront of innovation.ManufacturingThe city has limited drug/medicine exports.Companies generally opt to offshore manufacturing to lower-cost labour markets.The governm
122、ent is looking to increase R&D&high-tech manufacturings contribution to GDP.OutlookSince Chinas reopening in early 2023,business activity has fully resumed,and the life science sector can return.Further integration with the GBA will be a key driver for Hong Kongs life sciences industry going forward
123、.29Life Sciences Industry&Real Estate Perspective 2024Contents R&D facilities are primarily owned by the government,limiting private investor opportunities.Investors can consider converting or redeveloping old industrial buildings to meet the demand for lab space.Figure 7TalentFundingDomestic market
124、InnovationManufacturing capacityLife sciences Hong Kong30Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesBengaluruTalent Bengaluru has a good talent pool drawing from its relatively high-performing science universities,but the stream of talent is heavily skewed towards the I
125、T sector,which also poses strong human resource competition to the life sciences industry in the city.Its universities do not rank as highly as other universities in other cities in the region.Funding Bengaluru is a venture capital hotspot in the country and a top-ranked recipient of financing for s
126、tart-ups and scale-ups.The state of Karnataka is also able to attract large-scale investment proposals and industrial projects.Domestic marketThe Greater Bengaluru urban aggregation has a vast urban population,with a thriving services sector that is expected to keep growing in the medium term.It hos
127、ts numerous HQs and R&D centres of global companies,reflective of its attractiveness as Indias main IT cluster and a business services hub.InnovationGovernment policy has driven the city to become a prime start-up destination in the country.Bangalore Bioinnovation Centre is the largest life sciences
128、 hub in India.ManufacturingManufacturing and exports are geared towards the IT sector.The state government is targeting to increase support to life sciences start-ups,such as early-stage funding through various funds and grants.OutlookBengaluru is forecast to grow at a faster pace than the national
129、economy.Growth and job creation will be led by the information&communication sector,but life sciences contribution to GDP is expected to increase.31Life Sciences Industry&Real Estate Perspective 2024Contents Bengaluru LifeSciences Park offers bespoke R&D facilities and office buildings for life scie
130、nces companies.Foreign investors can partner with local developers for business park development.Figure 13TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Bengaluru32Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesHyderabadTalent Hyderabads talent ba
131、se comprises a diverse range of skilled professionals across the life sciences industry.The city and wider state of Telangana have a number of universities and institutions which produce talent to feed the industry.However,the institutions arent highly ranked in Asia Pacific.The city is also home to
132、 several research centres focused on pharmaceuticals,biotech,and defence-related technology.Funding Start-ups in the tech ecosystem benefit from access to funding through government and private sources.The state government also provides incentives,subsidies and grants to support life sciences compan
133、ies.Domestic marketThe city is a key player in servicing global demand for drugs and vaccines.India,despite having a younger population than other countries in this analysis,it is the most populous country in the world.The Greater Hyderabad urban aggregation also has a large population with a thrivi
134、ng service sector,especially in the fields of pharmaceuticals and IT.Both industries are set to grow strongly in the medium term.InnovationMany global and large Indian organisations in a range of industries have chosen Hyderabad as their location.The main cluster of Genome Valley,the establishment o
135、f a new dedicated business park named Pharma City as well as the expansion of the IT-oriented HITEC City will reinforce this trend.ManufacturingThe city is dubbed the vaccine capital of the world,with over a third of the global vaccine output produced here.Pharmaceutical manufacturing contributes su
136、bstantially to GDP.OutlookThe pharmaceutical sector is expected to continue the strong performance of the last decade.The state government is focused on nurturing a favourable ecosystem for start-ups,in partnership with corporates,academia,investors,government and other ecosystem players.33Life Scie
137、nces Industry&Real Estate Perspective 2024Contents Hyderabads Genome Valley is a leading life sciences cluster.Investors can form public-private partnerships for its future development or acquire purpose-built life sciences assets within the business park.Figure 14TalentFundingDomestic marketInnovat
138、ionManufacturing capacityLife sciences Hyderabad34Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesTokyoTalent A higher proportion of university or graduate school graduates tends to be concentrated in the metropolitan area around Tokyo.Japan also has strong academic institut
139、ions to supply talent to the industry.The University of Tokyo is highly regarded in terms of life sciences.Funding Tokyo is a global financial hub and the Tokyo Stock Exchange is amongst the worlds largest stock markets.Well-established financial markets and strong funding aspects of the tech ecosys
140、tem will create opportunities for expansion of life science companies.Domestic marketJapan is the worlds third-largest pharmaceutical market.Tokyo is the largest metro area in the world.The large population base and concentration of wealth hold great consumption potential for health-related products
141、 and services.Japan has a rapidly ageing population,and many people are migrating to urban areas.InnovationHistorically an innovation centre for the biopharmaceutical sector,Japan is also producing high-level innovation in various areas in health and life sciences.ManufacturingWorld leader in advanc
142、ed manufacturing and ranks high in patent applications.Continuous advancement through cooperation between leading companies,investors,universities and governments.OutlookJapans life sciences industry is one of the most mature in Asia Pacific,but industry growth has stagnated in recent years.Its rapi
143、dly ageing demographic is creating further opportunities for expansion of life sciences companies.35Life Sciences Industry&Real Estate Perspective 2024Contents Demand for life sciences R&D facilities in Tokyo exceeds supply.Investors can partner with local developers and life sciences companies for
144、purpose-built labs or convert underutilised office assets.Figure 10TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Tokyo36Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesSeoulTalent Seoul has several leading universities attracting talent from acros
145、s South Korea.Seoul National University is building its reputation in life sciences.Many universities have campuses right at the heart of life sciences clusters providing life science companies with great access to talent.FundingInvestment into life sciences R&D has increased significantly over rece
146、nt years,with significant government support and available funding driving investment activity.Domestic marketSeoul is South Koreas economic centre and most populous city.South Koreas healthcare industry has experienced significant growth over the past decade,with consumption capacity buoyed by risi
147、ng disposable income in the country.InnovationSouth Korea is an attractive destination to conduct clinical trials.The country is continuously enhancing its capacity and capabilities with the aim of becoming a patient-centric drug development powerhouse.ManufacturingDomestic production of health-rela
148、ted products have been steadily increasing,and pharmaceuticals,medical devices and cosmetics rank as one of the top export items in recent years.OutlookSouth Koreas relatively small yet dynamic consumer market will continue to attract life science companies.However,domestic companies may increasingl
149、y look to offshoring their manufacturing components to cheaper locations.37Life Sciences Industry&Real Estate Perspective 2024Contents A vast number of the buildings in the city are owner-occupied.Investors can explore opportunities with life sciences companies looking to dispose of their purpose-bu
150、ilt R&D headquarters in the area.Figure 11TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Seoul38Life Sciences Industry&Real Estate Perspective 2024Contents Life sciencesSingaporeTalent Local universities such the National University of Singapore contribute to talent in lif
151、e sciences.The city-state has also implemented various initiatives to attract,develop and retain life science talent.Funding Singapores traditional strengths in banking and finance can help start-ups to scale up and exit.The thriving life science industry is well-supported by various funding initiat
152、ives and government agencies.Domestic marketSingapores growth potential is buoyed by its rising middle class and business hub status.The city-state is a desirable location for local companies as well as multinational corporations to establish operations there in terms of R&D operations,manufacturing
153、,and corporate office space.However,the city-state has a small population in comparison to other cities in this analysis.InnovationBilled as the worlds freest economy in 2023,Singapore is an attractive base for regional life science company headquarters.In addition,it has invested significantly in i
154、ts collaborative ecosystem for life sciences and has become a world-class location for the industry.ManufacturingManufacturing remains one of Singapores largest sectors but in recent years,the countrys economy has been driven more by technology-related R&D.OutlookThe outlook of the industry is promi
155、sing in the medium term.Many large pharma and medtech companies may choose to locate there,and the government is supporting the emerging sectors and is expected to continue to do so in the future.39Life Sciences Industry&Real Estate Perspective 2024Contents Biopolis is Singapores life sciences R&D c
156、entre,but business park development opportunities are limited.Investors can convert industrial properties into specialised lab space or explore sale and leaseback arrangements.Figure 12TalentFundingDomestic marketInnovationManufacturing capacityLife sciences Singapore40Life Sciences Industry&Real Es
157、tate Perspective 2024Contents For real estate investorsThe investment appetite for life sciences real estate in the Asia Pacific region has exhibited steady growth in recent years.This can be attributed to several factors,including the sectors growth potential driven by demographic demand,the desire
158、 for increased portfolio diversification,and the potential for higher returns.The spotlight on life sciences has been further intensified by the profound impact of the COVID-19 pandemic.Governments have recognised the importance of supporting and strengthening the industry to enhance preparedness fo
159、r future health crises,leading to the implementation of new policies and favourable initiatives to encourage life sciences investments from both local and foreign investors.In addition to the direct impact of the pandemic,its aftermath has contributed to the increased Where are the opportunities in
160、this turbulent time?41Life Sciences Industry&Real Estate Perspective 2024Contents interest in life sciences real estate.As the global economy transitions through a period of higher inflation and increased interest rates,investors are drawn to the long-term stability provided by life sciences real es
161、tate assets.However,challenges persist in the region that must be overcome for the sector to mature to the extent witnessed in North America and Europe.One major obstacle has been the limited availability of investment stock,primarily because many research and development facilities are owned by uni
162、versities,government bodies,or life sciences companies.As these assets are often deemed mission-critical to their businesses,buying opportunities have been scarce.However,the rise in the cost of capital presents new opportunities as life sciences companies seek to unlock the capital tied up in these
163、 assets to drive innovation and expansion.This has resulted in potential partnerships for investors through“sale and leaseback”and“build-to-suit”agreements.There is also an emerging trend of owners repositioning assets by converting space within office buildings into lab facilities.However,such ende
164、avours come with regulatory and technical challenges that require specialised due diligence.Consideration must be given to power supply needs,ventilation requirements,ceiling heights,and compliance with local legislation regarding the storage of hazardous materials.While the life sciences real estat
165、e market in the Asia Pacific region is constantly evolving,the lack of comprehensive sector data has been a notable barrier.However,the increased investment activity is leading to greater transparency in the market.Comparisons with North America,where there is a significant amount of lab space in re
166、lation to office space,and the population and demand in the United States,indicate the potential for the Asia Pacific region to become the largest life sciences real estate investment region.The timing and realisation of this potential,however,will be influenced by various economic,technological,and
167、 policy factors,as well as the fostering of collaboration between industry,academia,and government stakeholders.42Life Sciences Industry&Real Estate Perspective 2024Contents For life sciences companiesThe Asia Pacific region offers significant opportunities for the life sciences industry,but capital
168、ising on these opportunities requires careful consideration and strategic decision-making.The geopolitical tensions,ongoing macro-economic uncertainty,and complex regulatory environment add layers of complexity to the business landscape.Understanding the trends,opportunities,and outlook in the real
169、estate market is pivotal for life sciences companies.The“look back,look forward”chapter of this report provides valuable insights into the industrys evolution,and synthesising this information into a robust strategy is crucial for long-term success.Location is a critical factor to consider.While com
170、panies have traditionally favoured out-of-town business and science parks for clustering purposes,there is a growing trend towards urbanised life sciences hubs.Employees are increasingly seeking convenient access to transportation,amenities,and work-life balance,making these urban hubs more appealin
171、g.However,specialised space availability can be a challenge in certain markets,such as Japan,South Korea,Hong Kong,and Singapore.Conversely,India currently has a surplus of life sciences space due to its rapid development.China and Australia have a healthy amount of life sciences stock,but the quest
172、ion remains whether it is in the optimal locations.The cost of capital now influences decisions that were previously not considered due to the mission-critical nature of real estate assets.The trend of“sale and leaseback”and“build-to-suit”projects is gaining momentum,driven by the appetite of invest
173、ors and developers on life sciences assets.By unlocking the value of real estate assets,life sciences companies can redirect funds towards innovation,research,and incubation.Delivery is another consideration for life sciences companies.They are evaluating their real estate operations to leverage the
174、m as strategic instruments that transform and accelerate their business processes.Partnering with experts for non-core activities like Facilities Management and Portfolio Services is becoming more common among global and local life sciences companies.This approach not only generates cost savings but
175、 also ensures consistency,compliance,and quality,which are complex and critical aspects given the regions diversity.In summary,the real estate challenges faced by life sciences companies in the Asia Pacific region are demanding and require careful planning and consideration.Navigating these challeng
176、es successfully involves understanding market dynamics,making strategic decisions around location and capital,and leveraging strategic partnerships for efficient delivery of non-core activities.43Life Sciences Industry&Real Estate Perspective 2024Contents The future of life sciences in the Asia Paci
177、fic region is full of incredible possibilities and opportunities.The increasing demand for specialised real estate and the willingness of well-funded life sciences companies to invest in such spaces is testament to the immense growth potential.Governments are actively encouraging the expansion of li
178、fe sciences,offering policies and incentives for investors and developers to build cutting-edge facilities perfectly suited for pharmaceutical and medical device companies.These purpose-built spaces will serve as catalysts for innovation and breakthrough discoveries.Partnerships are essential for un
179、locking the full potential.Investors and developers must engage directly with life sciences companies,understanding their evolving needs to create tailored projects that will fuel their growth.Collaborating through public-private partnerships in the development of science parks and land tenders will
180、 open up even more investment opportunities.What does it all mean?44Life Sciences Industry&Real Estate Perspective 2024Contents The future success of life sciences lies in the depth and diversity of commercial real estate supporting it.As life sciences companies seek markets with deep talent pools a
181、nd thriving innovation hubs,the redesigning and retrofitting of offices will become essential.This presents a chance for investors to not only contribute to the growth of the industry but also to shape the future by incubating the next wave of breakthroughs.Asia Pacific,with its vast talent pool,is
182、poised to become a global leader in life sciences.The potential for offshore research and drug manufacturing,coupled with the regions demographic and lifestyle changes,creates a fertile ground for advancements and profitable ventures.“So let us embrace the excitement and inspiration that the life sc
183、iences industry holds.Together,we can create the spaces and collaborations that will propel the region into a future of groundbreaking discoveries,improved healthcare,and a bright,prosperous tomorrow.Ross BallantyneChair,Asia Pacific Life Sciences Speciality Group,JLL45Life Sciences Industry&Real Es
184、tate Perspective 2024Contents This report has been prepared solely for information purposes and does not necessarily purport to be a complete analysis of the topics discussed,which are inherently unpredictable.It has been based on sources we believe to be reliable,but we have not independently verif
185、ied those sources and we do not guarantee that the information in the report is accurate or complete.Any views expressed in the report reflect our judgment at this date and are subject to change without notice.Statements that are forward-looking involve known and unknown risks and uncertainties that
186、 may cause future realities to be materially different from those implied by such forward-looking statements.Advice we give to clients in particular situations may differ from the views expressed in this report.No investment or other business decisions should be made based solely on the views expres
187、sed in this report.Copyright Jones Lang Lasalle IP,Inc.2023About JLLFor over 200 years,JLL(NYSE:JLL),a leadingglobal commercial real estate and investmentmanagement company,has helped clients buy,build,occupy,manage and invest in a variety ofcommercial,industrial,hotel,residential and retail propert
188、ies.A Fortune 500 company with annual revenue of$20.9 billion and operations in over 80 countries around the world,our more than 103,000 employees bring the power of a global platform combined with local expertise.Driven by our purpose to shape the future of real estate for a better world,we help ou
189、r clients,people and communities SEE A BRIGHTER WAY SM.JLL is the brand name,and a registered trademark,of Jones Lang LaSalle Incorporated.For further information,visit .Research authorsReady to create breakthroughs?Click here to contact our experienced life sciences subject matter experts To find o
190、ut more about JLL services,contact:Colin BridgeDirectorIndustries ResearchAsia PJames TaylorHead of ResearchWork DynamicsAsia PPamela AmblerHead of Investor IntelligenceAsia PJeffrey SunManagerCapital Markets ResearchAsia PRoss BallantyneLife Sciences Speciality Group ChairAsia PacificHead of FindOn
191、e JLLAsia P Ivan YeoGroup Account DirectorLife SciencesAsia PResearch at JLLJLLs research team delivers intelligence,analysis and insight through marketleading reports and services that illuminate todays commercial real estate dynamics and identify tomorrows challenges and opportunities.Our more tha
192、n 550 global research professionals track and analyze economic and property trends and forecast future conditions in over 60 countries,producing unrivalled local and global perspectives.Our research and expertise,fueled by real-time information and innovative thinking around the world,creates a comp
193、etitive advantage for our clients and drives successful strategies and optimal real estate decisions.Tim GrahamHead of International CapitalCapital MarketsAsia PRala KimDirectorAgency LeasingKReji SamuelHead of Life Sciences AdvisoryI Kathiresan SubramaniSenior DirectorProject&Development ServicesIJoris BerkhoutSenior DirectorAgency LeasingJ Paul DavisSenior DirectorCapital MarketsJ Patrick MacFarlandSenior DirectorTenant RepresentationA Stephen YuSenior DirectorLeasingShanghaiS