Real estate private equity firm Madison International Realty has invested $100 million, with an option to invest another $100 million, in life sciences REIT, IQHQ, Inc.
IQHQ has a portfolio of properties and development projects in Boston, San Francisco and San Diego, the top US life science markets. They include Fenway Center in Boston (pictured top), the Research and Development District in San Diego and South City Station in South San Francisco.
“The rapidly-growing life sciences sector has evolved as one of the most dynamic in the new normal of the post-pandemic economy. We are very excited to partner with the highly experienced team at IQHQ, which is pursuing real estate life sciences projects in prime biotech hubs throughout the country,” said Ron Dickerman, founder and president of Madison International Realty.
“IQHQ fits well with our differentiated strategy of investing in select property platforms with quality portfolios that we believe are poised for growth.”
The life science sector has demonstrated robust growth even before the onset of Covid-19 and research to develop a vaccine.
Having observed historical investment data and projections from various industry resources, Madison sees the already strong trajectory of the life science industry continuing for years to come.
For example, National Institute of Health grants to the life science industry have nearly quadrupled in the last 25 years and private capital investment has set records in recent quarters, which Madison believes signals a strong demand outlook for life science real estate.
“Global capital investment into life science and related R&D has grown for decades, exponentially increasing in recent years. We are enthusiastic about the timing of our investment in IQHQ, led by a highly experienced team, and are eager to expand our partnership with them,” said Kyle Torpey, of Madison’s US Investments team.
Madison International Realty specializes in acquiring private ownership stakes, joint venture positions, and listed property shares in prime properties and portfolios in major markets in the US, UK and Western Europe.