Colonial invests €200m in European life science

Spanish real estate giant Colonial and investment fund Stoneshield Capital have formed a European joint venture focused on developing science and innovation real estate, primarily laboratories.

Colonial is investing €200 mln in Deeplabs, a European science and innovation real estate venture that is 90% owned by Stoneshield Capital.
This partnership combines Deeplabs' existing €400 mln portfolio in Barcelona and Madrid with Colonial's resources to target expansion into major European cities such as Paris, Berlin, Amsterdam, Lisbon, Munich, and Cambridge.
Driven by increased demand for research and development space, the joint venture aims to manage over €2.4 bn in assets in the medium term.
A Colonial spokesperson commented: "The demand for science and innovation real estate is increasing, driven by structural changes in demographics, AI-driven technology, and geopolitics. Europe is committing record research and development budgets to boost the innovation economy amid a structural shortage of locations, due to a lack of the real estate expertise necessary to create adequate research and innovation facilities." 
Science and innovation real estate is a high-value asset class that offers attractive stabilized yields of 7-8% and benefits from limited supply, fostering strong ecosystems that draw in top-tier, long-term tenants.
Global trends are driving increased demand for science and innovation real estate. An aging population fuels growth in pharmaceutical and wellness R&D, while advancements in AI and technology require more sophisticated, specialized facilities. Furthermore, geopolitical factors are pushing Europe to invest heavily in R&D and related industries.