Same labs, different marks
Two years ago, life science real estate was hanging on to its reputation as a belle of the real estate ball. ULI and PwC ranked it 4th out of 27 property types for investment prospects.
Reality took a sharp turn, though, thanks to falling post-COVID demand and slower biomed capital flows.
Alexandria (a $15B REIT and the industry’s bellwether) is down 35% over the last 2 years.
…down 35% over 2 years.
Now the private side.
Blackstone bought BioMed Realty in 2016 in BREP VIII, then recapitalized it in 2020 into a perpetual core-plus life sciences vehicle.
We requested, received and reviewed documents from one of the vehicle's largest LPs, which suggest that the Blackstone BioMed vehicle is down only about 17% over the last two years.
Public prices, down 35%.
Private NAVs, down 17% over the same window.
Same sector.
Similar exposure.
Same time period.
Different marking systems.
What are we missing?
COMMENTS