DALLAS, Jan. 16, 2024 /PRNewswire/ — NexPoint, a multibillion-dollar alternative investment firm1, announced the launch of NexPoint Life Sciences III DST, a Delaware Statutory Trust (the “DST”), which acquired a life sciences industrial manufacturing property in Woodbury, Minnesota (the “Property”)2. The DST seeks to raise approximately $31 million through the offering. The investment reinforces NexPoint’s commitment to life sciences real estate, which continues to be a key area of growth across NexPoint’s real estate platform.
The approximately 138,000-square-foot property is the global headquarters for Kindeva Drug Delivery (the “Tenant”), a contract development and manufacturing organization (“CDMO”) that develops and manufactures products across a range of complex drug-delivery formats. The Property is a research, formulation, and development facility for the Tenant, which offers clinical manufacturing space, development laboratory space, and a range of features and capabilities to support drug delivery solutions. The DST investment benefits from having an experienced Tenant with a global client base and an attractive triple-net lease term.
Several key factors continue to drive demand for life sciences properties. Within the CDMO space, broad initiatives to re-shore biomanufacturing and other life sciences production activities to the U.S. have created significant demand for cutting-edge manufacturing facilities across the nation. The time and resources needed to create dedicated facilities for life sciences manufacturing leads many companies to look to CDMOs to support domestic production activities. This trend makes state-of-the-art U.S. manufacturing facilities occupied by active CDMOs, an attractive area for investment within the life sciences real estate sector.
“Within life sciences, we see long-term value in facilities that support the growth of high-demand biomanufacturing,” said Matt McGraner, NexPoint Real Estate Advisors’ Chief Investment Officer. “CDMOs play a major role in that, helping life sciences companies reduce time to market, increase capacity, and successfully navigate the path to commercialization, making opportunities to invest in CDMO-operated facilities especially compelling.”
The Property is located in Woodbury, Minnesota within the Minneapolis/St. Paul/Bloomington Metropolitan Statistical Area (the “MSA”). The MSA is a hub for research and development in the medical technology field which is enhanced by the concentration of high-powered academic and medical institutions. The MSA has received over $6.7 billion in National Institutes of Health and venture capital funding since 20153. This funding is not only indicative of its position as a leading life science market today, but also suggests a strong pipeline of future activity and growth, as recently funded research progresses toward commercialization.
NexPoint is a multibillion-dollar alternative investment firm4 comprised of a group of affiliated investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. NexPoint provides access to alternatives through a range of investment solutions, including public and private real estate investment trusts, tax-advantaged real estate vehicles, merger arbitrage and event driven strategies, other private real estate investments, closed-end funds, interval funds, and a business development company. NexPoint is based in Dallas, Texas and is part of a network of affiliates with expertise across the asset management and financial services spaces. For more information, visit nexpoint.com.
This material does not constitute an offer to sell. Only “accredited investors” (as that term is defined in Rule 501 promulgated under the Securities Act of 1933) who meet certain minimum requirements may invest. There are substantial risks in any investment program. The Private Placement Memorandum (“PPM”) governs the terms of the offering, and contains “Risk Factors” relevant thereto. Potential investors should review the entirety of the PPM prior to making a decision to invest. The information contained herein is qualified by the contents of the PPM. All potential investors must read the PPM in its entirety and no person may invest without acknowledging the receipt and complete review of the PPM. Past performance does not guarantee future results.
1 Based on assets under management.
2 The acquisition of the Property has not been closed and there is a material risk that such close may never occur.
3 Jones Lang LaSalle Americas, Inc.
4 Based on assets under management.
Prosek Partners for NexPoint