Entry into the German market with laboratory portfolio in the technology park “Im Neuenheimer Feld”
The real estate asset and investment manager GalCap Europe has acquired three life science properties in the renowned Im Neuenheimer Feld technology park in Heidelberg. The property ensemble, consisting of buildings 582, 583 and 584, comprises around 13,800 square metres of rental space and marks the company’s entry into the German life science real estate market.
The properties are located in the immediate vicinity of Heidelberg University Hospital and the German Cancer Research Center (DKFZ) and thus in the center of one of the most important life science clusters in Europe. The properties are fully let to companies and research institutions in the fields of biotechnology, pharmaceuticals and diagnostics.
Heidelberg: One of Europe’s leading life science locations
Heidelberg is one of the most important science and research locations in Germany. In the Rhine-Neckar region, more than 60,000 researchers, students and employees work in over 200 scientific institutions, companies and university institutes.
The Heidelberg Technology Park in the Neuenheimer Feld district is considered a central address for life science companies in Germany. University research, clinical applications and private companies work together in the immediate vicinity. An important player in the regional innovation ecosystem is the biotechnology network BioRN, which connects companies, research institutions and investors.
“The combination of scientific excellence, international research, and a strong biotech scene makes Heidelberg an ideal location for life science investments,”
Marco Kohla, Managing Partner at GalCap Europe, comments on the successful transaction.
The seller of the three properties is the Sparkasse Heidelberg.
„We are pleased to have gained a strong partner in GalCap Europe, which will sustainably support the further development of the technology park in Neuenheimer Feld and consistently continue the success story to date. Particularly noteworthy are GalCap’s high level of professionalism and distinctive know-how in the field of life science real estate. The sale therefore represents a clear gain for the Heidelberg site, Neuenheimer Feld and the entire technology park,” Rainer Arens, Chairman of the Board of Sparkasse Heidelberg and Chairman of the Shareholders’ Meeting of Technologiepark Heidelberg II GmbH & Co. KG, assesses the sale.
Heidelberg politicians are also happy about the new investor.
“Heidelberg is one of the best life science locations not only in Germany, but also internationally. Our technology park plays a very central role here. I am pleased that we have another strong and trustworthy partner at our side in GalCap Europe for the future further development of the technology park,” says Heidelberg’s Lord Mayor Eckart Würzner, commenting on GalCap Europe’s commitment.
Attractive asset class with structural growth
Life science real estate is increasingly developing into an independent asset class within institutional real estate portfolios, but one that places special demands on asset management. This development is driven in particular by demographic change, rising healthcare expenditure and the growing need for research, diagnostics and biotechnological development.
The demand for specialized laboratory and research space is growing correspondingly dynamically. At the same time, life science locations benefit greatly from cluster effects, as the exchange between research institutions, universities, start-ups and established companies is a key success factor for innovation.
Strategic expansion of the Life Science portfolio
With the acquisition of the Heidelberg properties, GalCap Europe is expanding its existing life science portfolio, which currently comprises four properties in Austria with a market value of around EUR 100 million.
“The acquisition in Heidelberg marks an important milestone in the development of our life science portfolio for institutional investors,” says Dr. Manfred Wiltschnigg, Managing Partner at GalCap Europe. “Our goal is to build a scalable portfolio in leading European research clusters that combines long-term stable returns with structural growth.”
