IGIS Asia Life Sciences Real Estate Fund Targets Assets of $350M

IGIS Asia, the Singapore-based investment arm of South Korea’s IGIS Asset Management, has launched a healthcare and life sciences real estate fund targeting assets under management of $350 million in the initial phase.

The investment vehicle follows the creation of a healthcare real estate joint venture between IGIS Asia and MonitCell, a Seoul-based stem cell specialist recently acquired by the fund manager. The companies will work together to enhance the value of real estate assets — including life sciences properties, senior housing, hotels and retail spaces — by integrating specialised services, IGIS Asia said in a release.

After establishing a strong domestic market presence, the partners plan to expand the fund into regional healthcare markets, primarily developed Asian countries, and pursue premium assets within established medical tourism clusters.

“IGIS Asia is strategically positioned to capitalise on Korea’s distinctive competitive advantages in the global healthcare market, creating new growth drivers for the Korea healthcare sector and establishing a sustainable competitive edge in the regional healthcare real estate sector,” the firm said.

Banking on Cells

MonitCell’s technology involves the extraction, banking and therapeutic application of stem cells derived from adipose tissue. After legal restrictions on stem cell cultivation in South Korea compelled patients to seek treatment abroad, MonitCell developed techniques that minimise stem cell damage from the liposuction stage and maximise stem cell yield and viability, according to the company.

The IGIS-MonitCell JV plans to focus on comprehensive asset operation for healthcare properties and implement targeted marketing through partnerships with clinics.

The tie-up comes two years after IGIS Asia teamed with Korean biopharmaceuticals group CHA Bio to launch a platform for life sciences real estate investments across Asia Pacific. The venture develops and invests in life sciences assets, including R&D and manufacturing facilities, medical offices, hospitals and other healthcare centres, with an initial focus on South Korea.

Although the fund size was not disclosed, an account in Korea’s MTN News stated at the time that the vehicle was expected to raise about $630 million and seek investments in Singapore, Japan and Australia, as well as Korea.

Vital Signs

Demographic drivers, rising healthcare spending, research-focused clusters and government support have led to heightened interest in life sciences real estate in Asia Pacific, including the creation of regional platform Vita Partners as a joint venture of US private equity giant Warburg Pincus and Australian developer and fund manager Lendlease.

Vita’s investment portfolio comprises seven assets, including the Solaris building in Singapore’s One North research cluster, after the platform sold its seed asset, a mall turned R&D workplace in Yokohama, in March.

Mingtiandi reported last year that Brunei’s sovereign wealth fund had acquired a 49 percent stake in Elementum, a One North life sciences complex, from Singaporean developer Ho Bee Land for S$272 million ($205 million).