India's Life Sciences Sector Poised for Strong Growth

Life Sciences in
India – The Sector of
Tomorrow
INDIA
REAL ESTATE
CBRE RESEARCH
MARCH 2023
REPORT
INTELLIGENT INVESTMENT

2 CBRE RESEARCH ©2023 CBRE, INC.
Life Sciences in India – The Sector of Tomorrow
Intelligent Investment
Contents
Snapshot
of the Life
Sciences (LS)
Sector in
India
LS Real Estate
Clusters in India
Favourable
Policy
Ecosystem
Fuelling the
Sector
Annexures
Growth
Drivers
for the LS
Sector in
India
LS Real Estate
Trends in India
1
4
2
5
3
6

Chapter 1
Snapshot of the
Life Sciences (LS)
Sector in India

As the world emerges out from the pandemic, new growth opportunities are unfolding in the LS sector globally with advancements in healthcare, technology and research. As India is one of the
fastest growing LS markets of the world, we expect the sector to become a significant contributor to its economic growth over the coming years. The LS sector in India is further divided into
three subsectors - pharmaceuticals, biotechnology and medical devices, each of which has played a prominent role in global / domestic markets in recent years (refer figure 1.1).
Current Snapshot of the LS Sector in India
Figure 1.1: Key stats of Indian LS subsectors
Source: Invest India website updated as of 2022; 2021-22 Annual Report of Ministry of Chemicals & Fertilizers, Government of India (GoI); CBRE Research, Q1 2023
• Ranks 3rd globally in pharma production by volume
• Ranks 14th globally in pharma production by value
• ~USD 24.4 bn: Total pharma exports in 2020-21
• ~USD 6.7 bn: Total pharma imports in 2020-21
• Key segments in India include generic drugs, over-
the-counter (OTC) medicines, bulk drugs, vaccines,
contract research & manufacturing, biosimilars and
biologics
PHARMACEUTICALS
• Among top 12 biotechnology destinations globally;
3rd largest in Asia Pacific
• Market size crossed USD 80.1 bn in 2022, a 14%
Y-o-Y growth
• Houses more than 760 biotechnology companies
• Key segments in India include bio-pharmaceuticals,
bio-agriculture, bio-industrial and bio-IT & bio-
services
BIOTECHNOLOGY
• Houses about 750–800 domestic medical device
manufacturers
• 65% of the manufacturers in India are mostly domestic
players
• ~USD 2.5 mn: Total medical device exports in 2020-21
• ~USD 6.4 mn: Total medical device Imports in 2020-21
• Key segments in India include consumables &
disposables, diagnostic imaging, dental products,
orthopaedics & prosthetics and patient aids
MEDICAL DEVICES

The three subsectors of the Indian LS sector are expected to witness an accelerated growth in the coming years led by various factors such as policy interventions, infrastructure development, foreign direct investments
(FDI), improved manufacturing capabilities and access to cost-effective talent pool.
A few of the key trends that are already visible in each of these subsectors in India are:
Multifold Growth Expected in India across LS Subsectors by 2030
Source: Invest India website updated as of November 2022; 2021-22 Annual Report of Ministry of Chemicals & Fertilizers, GoI; CBRE Research, Q1 2023 Source: Invest India, 2022; Indian Pharmaceutical Alliance (IPA), 2022; Ministry of Health and Family Welfare, GoI, 2022; CBRE Research, Q1 2023
• Generic medicines – India is the largest supplier of generic medicines with a share of 20% in the global supply
• Active Pharma Ingredients (API) - The country has 500 API manufacturers, accounting for ~8% of the global API
industry; 90% of WHO pre-qualified APIs are sourced from India
• Vaccine - India accounts for 60% of the global vaccine demand; 65-70% of the WHO’s vaccine requirements are
sourced from India
• Biosimilars - India is an emerging hub for biosimilars with over 127 approved variants in the domestic market,
higher than any other country
• Bio-pharmaceuticals - India is one of the largest global suppliers of low cost drugs and vaccines
• Bio-IT & services - India ranks second globally in the number of US FDA-approved manufacturing plants
outside the USA
• MedTech - Houses more than 250 MedTech startups
• Personal protective equipment (PPE) kits - India is the 2nd
largest manufacturer globally with a production
capacity of more than 10 lakh PPE coveralls per day
Pharmaceuticals
Pharmaceuticals
Biotechnology
Medical devices
Biotechnology
Medical devices
More than
2.5X growth
More than
3.5X growth
More than
4.5X growth
Figure 1.2: Indian LS subsectors’ market size forecasts for 2030
49 bn
80 bn
11 bn
130 bn
300 bn
50 bn
USD
USD
USD
USD
USD
USD
2022
2022
2022
2030 E
2030 E
2030 E

Chapter 2
Growth Drivers for
the LS Sector in India

The fast increasing population and rising life expectancy are likely to expand the need for healthcare services in the country over the coming years. Moreover, a strong industrial base and inclusive government initiatives
in terms of policies and infrastructure creation have made the country one of the key potential destinations for the LS sector (refer figure 2.1).
Factors Determining India as an Appealing LS Destination
Note: *as of 2022; #forecasted estimates; ** Production Linked Subsidy Scheme; ^proposed
Source: World Population Review, 2022; National Commission on Population (NCP), Ministry of Health and Family Welfare, GoI, 2020; Media articles, Q1, 2023; United Nations data, 2023; Invest India, 2022; Ministry of Finance, GoI, 2022; CBRE Research, Q1 2023
Figure 2.1: The three pillars of LS growth in India
1.5 bn
Population by 2036#
Currently 1.4 bn*; estimated to be largest in
the world overtaking China as of Dec 2022;
houses 17-18% of global population*
USD 132 bn
Size of hospital industry by 2023#
USD 3 bn+
Outlay under PLI scheme**
78 years
Life expectancy by 2050#
15% increase as compared
to 68 years in 2022
USD 13 bn
Size of medical tourism industry by 2026#
More than double as compared to 2020
7 bulk drugs
& medical device parks^
USD 122 mn cap for each bulk drug park;
USD 12 mn for each medical device park
Demographics Industrial
Base
Policy Push
~17% CAGR growth over 2017-23
for pharmaceuticals, bulk drugs and
medical device segments during 2021-26

The increasing government spending on healthcare sector is acting as a key catalyst of growth for the LS sector in India. The country also offers cost benefits in terms of affordable manpower and real estate expenses
as compared to other global markets. In addition, the availability of large talent pool and a growing number of biotech startups have placed the country in a favourable position to attract global / domestic investments.
Factors Determining India as an Appealing LS Destination
Note: #
forecasted estimates; *To know more, please download CBRE India’s first publication on the healthcare sector, ‘The Evolving Indian Healthcare Ecosystem: What It Means for the Real Estate Sector’
Source: World Bank; Economic Survey FY21; Future Generali, 2022; Glassdoor, 2022; All India Survey on Higher Education, Ministry of Education, GoI, 2020; CBRE Research, Q1 2023
Figure 2.2: The three catalysts of LS growth in India
Healthcare expenditure @ 2.5%
of the GDP by FY 2025-26#
1.3 bn sq. ft.
additional healthcare space
required* by 2030
2.9 mn additional hospital beds needed
by 2030 to match the global bed-to-population average
40 bps increase from 2.1% of GDP
at present (i.e., INR 83,000 crore allocated in FY 2022-23)
Healthcare
Needs
Sub dollar rents
for R&D lab space
USD 11,000 / year
average salary
of LS scientists as of 2022
More than 9X cost-effective than USA
in LS business parks
Cost Benefits
5,000+ biotech start-ups
as of June 2022
12 lakh + students
enrolled in pharma courses*
Between 2015-20
Total 800+ specialised colleges for pharma courses
1,100 start-ups added in 2021
Talent Pool

Chapter 3
Favourable Policy
Ecosystem Fuelling
the LS Sector

The Indian LS sector is supported by various policies introduced by the central government to boost domestic manufacturing capacity and to increase global exports of pharmaceutical and biotechnology
products and medical devices from the country. A few of the key central policies are outlined below:
Central Policies Encouraging LS Investments in India
Figure 3.1: Key central level policies for the LS sector in India
Note: *Key Starting Material; **Drug Intermediates
Source: Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, GoI, 2020-22; Department of biotechnology, Ministry of Science & Technology, GoI, 2021; CBRE Research, Q1 2023
PLI Scheme for
Critical
KSMs* / DIs** / APIs
March 2020
FY 2020-21 to FY 2029-30 FY 2020-21 to FY 2025-26 FY 2020-21 to FY 2024-25 FY 2020-21 to FY 2024-25 FY 2020-21 to FY 2028-29 2021-25
PLI Scheme for
Medical Devices
March 2020
Scheme for
Promotion of Bulk
Drug Parks
March 2020
Scheme for
Promotion of Medical
Device Parks
March 2020
PLI Scheme for
Pharmaceuticals
Nov 2020
National
Bio technology
Development Strategy
March 2021
Financial Outlay
~USD 850 mn
4 - 6% incentive
based on
incremental sales of
goods (over base
year) manufactured
in India
Financial Outlay
~USD 2,250 mn
4 - 6% incentive
based on incremental
sales of goods (over
base year)
manufactured in India
Financial Outlay
~USD 365 mn
Financial assistance
for creation of
common
infrastructure facilities
in three bulk drug
parks
Financial Outlay
~USD 50 mn
Financial assistance
for creation of
common
infrastructure facilities
in four medical
device parks
Financial Outlay
~USD 1,830 mn
4-6% incentive
based on incremental
sales of goods (over
base year)
manufactured in India
To build human
resource and
infrastructure
capacity to cater to
the sector’s
requirements

In addition to the central level policies, various state governments have also been giving an enormous push to the LS sector over recent years, complete with dedicated policies and LS cluster developments. Below is a
snapshot of key state level initiatives and incentives in the primary and secondary LS markets in India.
*In a few cases, though the policies do not directly mention about a particular
incentive, an indication of indirect initiatives has been considered
Source: Respective state government websites; Invest India website updated as
of November 2022; CBRE Research, Q1 2023
State-level Policies are Additional Investment Magnets
Figure 3.2: Key state-level policies for the LS sector in India
Haryana Pharmaceutical
Policy, 2019
Uttar Pradesh Pharmaceutical
Industry Policy, 2018
Rajasthan MedTech and
Bulk Drug Policy, 2021
Karnataka Biotechnology
Policy, 2017
Gujarat Biotechnology
Policy, 2022
Telangana Life Sciences
Policy, 2015
Odisha Biotechnology
Policy, 2018
Tamil Nadu Life Sciences
Policy, 2022
1
1
2
8
9
6
4
7
3
5
2
Himachal Pradesh
Madhya Pradesh
Maharashtra
Andhra Pradesh
LEGEND
Land-related incentives
Infrastructure development
Capital subsidies / capital interest subsidies
Stamp duty exemptions
Tax benefits
Single-window clearance / ease of approvals
States with dedicated LS policies
Existing medical devices clusters
3 Bulk Drug Parks proposed
Himachal Pradesh, Gujarat and
Andhra Pradesh
4 Medical Devices Parks proposed
Tamil Nadu, Madhya Pradesh, Uttar
Pradesh, Himachal Pradesh
PRIMARY LOCATIONS
1. Hyderabad
2. Bangalore
SECONDARY LOCATIONS
1. Mumbai
2. Pune
3. Delhi-NCR
4. Chennai
5. Ahmedabad
6. Vadodara
7. Visakhapatnam
8. Valsad
9. Ankleshwar

Chapter 4
LS Real Estate
Clusters in India

LS company portfolios typically consist of four major components, namely R&D laboratories, logistics facilities (including cold storage), manufacturing facilities and corporate offices, as detailed below:
Key Components of LS Real Estate Portfolios
Biotechnology R&D
Genetic
engineering
Cell
engineering
Enzyme
engineering
Fermentation
engineering
Protein
engineering
Raw materials
Plasma
Cell culture
gene
Antibodies
and enzymes
Low serum
medium
Antigen
Biomedical manufacturing
Genetically
engineered
drug
Vaccines
Blood
products
Diagnostic
reagent
Logistics and sales
Distributors /
3PL players Logistics
Wholesalers Consumers
R&D labs
Research
organisations
Pharmaceutical
companies
Pharmaceutical
companies
Universities
Hospitals
Distributors / 3PL firms
Pharmacies /
Retail shops
Offices LS parks
Small-sized
manufacturing
plants
Large-sized
manufacturing
plants
Offices LS parks
Pharmaceutical
companies
Pharmaceutical
companies
Research
organisations
LS parks Offices
LS parks Industrial parks
Industrial parks
Other
chemical raw
materials
Cold Chain
Logistics
Industrial parks
Source: CBRE Research, Q1 2023
Real estate asset types
that house LS companies:
Components of LS
company portfolios:
LS park
Industrial park
Office
Retail
R&D laboratories
Logistics facilities
Large-sized
manufacturing plants
Small-sized
manufacturing plants

Pharmaceuticals is a highly regulated industry and entails numerous regulatory approvals, including the registration of manufacturing plants and Good Manufacturing Practices (GMP) certifications. An analysis of the
WHO-GMP* certified pharmaceutical manufacturing plants in the country revealed that as of 2019, Gujarat housed the highest number of WHO-GMP certified pharma manufacturing plants followed by Maharashtra,
Himachal Pradesh and Telangana. Further, Uttarakhand, Tamil Nadu, Karnataka and Andhra Pradesh are also major manufacturing hubs (refer Figure 4.1). Moreover, India ranks second globally in terms of the number of US
FDA-certified plants located outside the US, closely following China (refer Figure 4.2).
LS Manufacturing Well Supported by Pharmaceutical Clusters in India
Figure 4.1: Geographical distribution of WHO-GMP-certified plants in India (as of 2019) Figure 4.2: Percentage of US FDA-certified plants located outside the US (as of May 2022)
Himachal
Pradesh
Uttarakhand
Maharashtra
Telangana
Andhra
Pradesh
Tamil Nadu
Karnataka
Gujarat
Lowest Highest
19%
8%
5%
5%
4%
4%
4%
3%
3%
3%
2%
2%
2%
18%
18%
Source: Central Drugs Standard Control Organization (CDSCO), 2019; CBRE Research, Q1 2023
*World Health Organization – Good Manufacturing Practices
Source: US Food & Drug Administration, May 2022; CBRE Research, Q1 2023
China
India
South Korea
Canada
France
Germany
Italy
Mexico
United Kingdom
Japan
Spain
Switzerland
Ireland
Taiwan
Others

Telangana leads with the highest number of US FDA-certified plants, followed by Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu. Other states with a sizeable presence include Madhya Pradesh and
Himachal Pradesh. A further analysis of the type of operations revealed that while Gujarat is the topmost state for general manufacturing, Telangana is the leading state for analysis and API manufacturing.
Telangana, Maharashtra and Gujarat are the Key Export Clusters
Fig 4.3: Distribution of US-FDA certified plants in India (as of May 2022) Fig 4.4: Distribution of US-FDA certified plants by type of operations (as of May 2022)
Himachal
Pradesh
Maharashtra
Telangana
Andhra
Pradesh
Tamil Nadu
Karnataka
Gujarat
Lowest Highest
29%
Madhya Pradesh
*indicates production of finished pharmaceutical products **indicates production of an active ingredient in any pharmaceutical product
Gujarat Maharashtra Telangana
Karnataka Others
Telangana Andhra Pradesh Maharashtra
Karnataka Others
22%
15%
8%
40%
25%
18%
17%
23%
15%
17%
Manufacturing* API Manufacturing**

India has about nine biotechnology clusters at various stages of development, located in Karnataka, Telangana, Tamil Nadu, Gujarat, Uttar Pradesh, Kerala, Chhattisgarh and Jammu & Kashmir. Below is a snapshot of
select biotechnology clusters in the country along with an indication of the availability of real estate facilities such as office spaces, manufacturing units, R&D lab spaces and logistics & cold storage facilities.
Source: Department of Biotechnology, GoI; CBRE Research, Q1 2023
*PPP – Public Private Partnership; ** for R&D lab space
LS Parks Facilitate Office, Manufacturing, R&D and Logistics Requirements
Figure 4.5: Key LS Parks in India
City Lucknow
LS cluster Biotech Park, Lucknow
Year of setup 2002
Category Established cluster
Ownership Government
City Vadodara
LS cluster Savli Biotech Park
Year of setup 2007
City Chennai
LS cluster TICEL Bio Park
Year of setup 2004
City Bangalore
LS cluster Bengaluru LS Park
Year of setup 2022
Category Emerging cluster
Ownership A PPP* between the Government of Karnataka
and private entity Labzone Corporation
Other key clusters Syngene Park, BIOCON Campus
City Hyderabad
LS cluster Genome Valley
Year of setup 1999
Ownership
Government land allotments to various private
companies
Other key clusters
Medical Device Park at Sultanpur, Hyderabad
Pharma City
Uttar Pradesh
Tamil Nadu
Telangana
Karnataka
Gujarat
Office space
Primary markets Secondary markets
Manufacturing units
R&D lab space
Logistics & cold storage facilities

Leading LS companies in India prefer to operate from large-scale parks that can meet both their office and R&D needs. Startups and MSMEs are also increasingly opting to locate themselves in parks with a clear
industrial positioning and abundant R&D resources. Thus, site selection plays an important role for the successful functioning of any LS park catering to various occupier requirements.
What do Occupiers Look for in LS Parks?
Figure 4.6: Site selection strategy for LS clusters
High industry
concentration
Presence of
upstream and
downstream
industries
High quality
clinical resources
and laboratories
Supportive central
& state policies
Promotion of
industrial clusters
Transport:
Last-mile
connectivity,
shuttle
services, public
transportation
and parking
spaces
Environment:
Green / open
spaces and
amenities
Core: Office
spaces and R&D
labs
Others: Exhibition
centres,
conference rooms,
leisure spaces
Industrial
land with
environmental
clearances and a
non-contentious
title
Compliance
with general
requirements and
building technical
codes for biosafe
laboratories
Dedicated space
for biohazard
disposal solutions
Single storey
factory with
cleanroom
Strict security to
prevent theft or
leakage of R&D
data
5.0 m floor height
(including space
for R&D equipment
installation)
Electrical Supply:
200-650 W / sq. m.
Floor Loading: 500
– 1,500 kg / sq. m.
Ceiling Bearing:
to accommodate
air handling unit
(AHU)
Location Policy Amenities Function Land Title Property Type Specifications*
*Note – Specifications can vary basis the type of facility (drug substance / drug product / an Oral Solid Dosage (OSD) facility)
Source: CBRE’s Shanghai Pharmaceutical & LS Industry Report, 2021; CBRE Research, Q1 2023

Chapter 5
LS Real Estate
Trends in India

Sustained Leasing Activity by LS Firms over the Last Two Years; Healthcare Companies a Key Driver
Figure 6.1: Annual space take-up by LS companies (2019-2022)
Rank indicates the LS sector position in overall pan-India leasing as compared to other sectors
Figure 6.2: Sub-sector-wise leasing by LS companies (2019-2022)
0%
1%
2%
3%
4%
5%
6%
7%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2019 2020
Rank 8
Rank 7
Rank 6
Rank 6
2021 2022
(%
share)
(in
million
sq.
ft.)
LS space take-up in mn sq. ft. LS sector share in pan-India leasing
0.0
0.4
0.8
1.2
1.6
2.0
2019 2020 2021 2022
(in
million
sq.
ft.)
Pharmaceuticals Biotechnology Medical devices Healthcare
Note: All the above analysis only includes office space take-up by LS firms in business parks in India and doesn't include industrial & logistics (I&L) / R&D spaces
Similar to other sectors, office space take-up by LS companies saw a short-term slow down in 2020 owing to pandemic-related disruptions (refer figure 6.1). However, the
leasing activity crossed the pre-COVID levels in 2021 and 2022, led by healthcare firms (refer figure 6.2). Leasing by medical device firms peaked in 2020 due to increased
demand for safety and diagnostic kits during the outbreak of the pandemic.
Cumulative space take-up by LS firms during 2019-22 – 8.6 mn sq. ft.

Hyderabad
Cities with LS Infrastructure and Research Institutions are Largely Preferred by LS Firms;
Small-sized Deals Dominated across Cities
Figure 6.3: City-wise share in office leasing by LS firms (2019-22)
Source: CBRE Research, Q1 2023 Source: CBRE Research, Q1 2023
Note: Small sized deals indicates transactions
less than 50,000 sq. ft.
Healthcare Medical devices Pharmaceuticals
*Note – Others include Ahmedabad, Pune, Kolkata and Kochi
Note: All the above analysis only includes office space take-up by LS firms in business parks in India and doesn't include I&L / R&D spaces
38%
8%
5%
8%
19%
22%
Bangalore Delhi-NCR Hyderabad Chennai
Mumbai Others
8.6 mn sq. ft.
Figure 6.4: Key LS sector leasing trends in top five cities
Bangalore
Delhi
Chennai
Mumbai
Prominent sub-sectors
Cities
Led by the presence of large LS clusters, grade A office spaces, quality R&D labs, incubation centres and research institutions LS companies
largely prefer Bangalore followed by Delhi-NCR and Hyderabad for office space take-up in India.
Share of small sized
deals (2019-22)
53%
76%
57%
95%
100%

LS Firms Displaying Appetite for Expansion in India; Bangalore, Hyderabad and Delhi-NCR
are Mostly Preferred
Figure 6.5: Deal type analysis of LS space take-up (2019-22) Figure 6.6: City-wise deal type analysis (2019-22)
Expansion New entrants Relocation
Consolidation & expansion Relocation & expansion
56%
33%
7%
3%1%
8.6 mn sq. ft.
EXPANSION
NEW ENTRANTS
RELOCATION
CONSOLIDATION
& EXPANSION
RELOCATION &
EXPANSION
Healthcarefirmsaccountedformorethanhalfoftheexpansionsfollowedbypharmaceuticalcompanieswithashareofalmost
one-third of expansions during 2019-22. More than three-fourths of the new entrants during 2019-22 were also from the
healthcare sub-sector.
Bangalore
Delhi
Delhi
Bangalore
Chennai
Hyderabad
Bangalore
Bangalore
Delhi
Hyderabad
Ahmedabad
Please refer to annexure for definitions of expansion, new entrants, relocation, new lease, consolidation & expansion and relocation & expansion

Bangalore
American and EMEA LS Firms are Expanding in India, while APAC and Domestic
Companies are Entering New Cities
Figure 6.7: Regional share in LS space take-up (2019-22) Figure 6.8: : Top cities preferred by regional LS firms (2019-22)
56%
24%
19%
1%
Americas EMEA APAC Domestic
8.6 mn sq. ft.
AMERICAS
EMEA
APAC
DOMESTIC
Expansions constituted more than half of the space take-up
byAmericanLScorporatesduring2019-22,followedbynew
entrants (30%). Space take-up by EMEA LS firms was also
largely led by expansions (83%) followed by new entrants
(13%).
New entrants accounted for almost 60% of the space take-
up by APAC LS firms during 2019-22 and 23% involved
relocationswithinthecities.DomesticLSfirmshadanalmost
equal share of new entrants (37%) and expansions (35%)
during the same period.
Bangalore
Delhi
Bangalore
Hyderabad
Mumbai
Delhi
Delhi
Delhi
Hyderabad
Hyderabad
Kolkata

LS is one of the top alternate real estate choices for investors across the globe – a trend we have tracked over the past few years. In our latest APAC
Investor Intentions Survey 2022, healthcare-related properties, including LS assets were named the most popular alternate segment, overtaking
Data Centres (DCs) for the first time since the survey began.
Below is a lowdown of a few key LS investments announced in 2022.
LS on Investors' Radar
Figure 6.9: Key LS investments in 2022
INVESTOR INVESTMENT DETAILS
Source: Media articles, 2022; CBRE Research, Q1 2023
Note: Average exchange rate as of February 2023 - 1 USD = 82.1 INR
Aurobindo Pharma’s
CuraTeQ Biologics
Rx Propellant
INR 300 crore
(~USD 37 million)
INR 1,100 crore
(~USD 134 million)
Expansion of manufacturing facilities
in India (Planned)
Development of 0.9 mn sq. ft. lab space at
Genome Valley in Hyderabad (Planned)
Partnership (for a minority stake) with
MedGenome in Bangalore (Signed)
Expansion of three manufacturing facilities in
Genome Valley Hyderabad (Planned)
Partnership with Accumax Lab Devices
in Ahmedabad (Signed)
Structured debt funding for API Holdings,
the parent company of PharmEasy (Planned)
INR 400 crore
(~USD 50 million)
INR 1,800 crore
(~USD 220 million)
INR 520 crore
(~USD 68 million)
INR 2,700 crore
(~USD 350 million)
Biological E
Creador India Life
Sciences Fund
Goldman Sachs
Novo Holdings
Sep ‘22
Oct ‘22
Aug ‘22
Jul ‘22
Jun ‘22
May ‘22

LS Parks - Real Estate Outlook Indicators for Next Three Years
• Entry and expansion of global /
domestic developers
• Increase in cluster
developments such as bulk drug
parks, medical device parks,
pharma cities etc. with best-in-
class R&D facilities
• Rental growth would be led by the
LS sectoral demand in the short
to medium term and the resulting
impact of fitout costs
• Increasing space take-up by
pharmaceuticals, biotechnology,
medical device and health care
firms in the coming quarters.
Select companies are also
considering taking up flex spaces
• Higher preference for BTS
developments with plug & play
features and ESG standards
• Dip in vacancies expected to be
led by ‘flight to quality’ leasing in
new-age LS parks in the medium
to long term
• Costs expected to continue
to rise, but marginally. This is
because inflationary pressures are
widely expected to abate in 2023.
This, alongside the resolution of
supply chain disruptions and more
active policy interventions from
the government, might limit hikes
in material prices
NEW SUPPLY RENT
SPACE TAKE-UP VACANCY FITOUT / CONSTRUCTION COSTS

Future Strategies for LS Occupiers
• Capture the current leasing market to
optimise portfolios before a full post-
pandemic recovery
• Adopt hybrid work policies and activity
based working to align with the
changing employee requirements if
applicable
• Need-based leasing of flex spaces
• Enhance distribution networks and last-
mile efficiencies
• Partner with 3PL players to improve
supply chain networks
• Target suitable facilities or partner with
landlords to enhance assets
• Leverage government incentives to
strengthen R&D capabilities
• Increase R&D footprint in LS parks
• Focus on co-labs and incubators to
support start-ups
• Leverage government incentives to
strengthen manufacturing capabilities
• Enhance distribution networks and last-
mile efficiencies
• Partner with 3PL players to improve
supply chain networks
• Target suitable facilities or partner with
landlords to enhance assets
OFFICE
LOGISTICS / COLD STORAGE
FACILITIES
R&D LABS MANUFACTURING FACILITIES

Chapter 6
Annexures

Technical Specifications of a Typical LS Park in Bangalore
Project Features
• Leasable area: 0.9 mn sq. ft.
• Typical floor size: ~63,000 sq. ft.
• No. of floors: G+14
• Refuge floors: 5th, 8th, 11th and 14th floor
7,311 kVA from BESCOM
and 100% DG backup
(2,000 kVA X 5 primary + 1
standby)
High performance façade
425 TR x 5 (4 primary +
1 standby) water-cooled
screw chillers with MERV
14 filters
11 X 10.2 m grid
410 KLD with
MBR system
12 passenger elevators
with destination control
systems
As per the NBC & local fire
authority norms
4.2 m
~ 80%
Building area and floors
Power
Façade
Air conditioning system
Grid
Sewerage Treatment Plant (STP)
Elevators
Fire & safety
Floor to floor height
Building efficiency
ANNEXURE I
Please refer to Annexure III for full forms of the abbreviations given

ANNEXURE I
Technical specifications of a Typical LS Park in India
Warm Shell
0.8 kVA / 100 sq. ft. on total
leasable area (varies as per
client requirements)
• 425 TR * 5 (4W + 1 standby)
water cooled screw chillers
• MERV 14 filters are provided
as per WELL certification
requirement
• Considered as per
ASHRAE 62.1 standard and
additional 30% as per WELL
certification requirement
• Typical office floor load
design - 4.5 kN / sq. m.
• Ground, first, second floor
load design - 7.5 kN / sq. m.
• Each office floor grid load
design - 10 kN / sq. m. for
servers and other loads
• Basement parking area
load design - 5.0 kN / sq. m.
Designed as per
NBC 2016 and fire
NOC obtained by the
department
100% power backup (2,000
kVA X 5 + 1 standby)
1,100 kg
Capacity of 410 KLD with
MBR technology
Every 7,750 sq. ft.
Raw power
HVAC
Fire detection and
protection system
Floor load design
Power backup
OWC capacity
STP
Car park
Please refer to Annexure III for full forms of the abbreviations given

ANNEXURE II
Case Study: Lease Terms of R&D Spaces in Hyderabad
Traditional Office Spaces LS R&D Spaces
Rent
(INR / sq. ft. month)
CAM
(INR / sq. ft. / month)
Security Deposit
(no. of months)
Lock-in period
Lease Tenure
50 - 75 8 - 15
60 - 85 15 - 22 6 months
6 months
5 years
5 years
3 years
3 years

ANNEXURE III
Key Terminologies in the LS Sector
TERM DEFINITION
Pharmaceuticals Involves creation of medicines from chemicals and synthetic processes
Biotechnology Involves technology that derives products from the extraction or manipulation of living organisms
Medical devices Any instrument, apparatus, implement, machine, appliance, implant, software, material etc., intended to be used, alone or in combination for a medical purpose
Medicine vs. Drug
Medicine is a substance or preparation used in treating disease, while drug is intended to bring change in normal physiological functions of body
Medicines have only positive impact on the body, while drugs may have both positive / negative impact
Note - All medicines are drugs but all drugs are not medicines
Biologics Drugs that contain components from living organisms such as humans, plants, animals, and microorganisms
Biosimilars Biosimilars are not new drugs, but rather they are copies of biologic drugs that have been used to treat several diseases and conditions
Active Pharmaceutical Ingredient (API) Active components of any drug that produces the intended effect. A raw material / intermediate used in the production of an API; incorporated as a key structural fragment of API
Key Starting Material (KSM) A raw material / intermediate used in the production of an API; incorporated as a key structural fragment of API
Drug Intermediates (DIs) Raw materials used for the production of bulk drugs; not necessarily an integral part of active substances
Generic drugs
A generic drug is a medicine created to be the same as an already marketed brand-name drug in dosage form, safety, strength, route of administration, quality, performance characteristics, and
intended use
Patent vs. Generic drugs A drug which is protected by patent is a patent drug and the drug which is a copy of branded drug and is equivalent in terms of safety, efficacy, dosage and use is called a generic drug
Bulk Drug Park Clusters / space with common infrastructure facilities for the exclusive manufacture of APIs / DIs / KSM
Medical Device Park
Clusters / demarcated areas for manufacturing of surgical equipment, diagnostic equipment such as cardiac imaging, CT scans, X-ray, molecular Imaging, MRI and ultrasound-imaging including
handheld devices; life support equipment such as ventilator, etc.; and implants and disposables
USFDA U.S. Food and Drug Administration; a federal agency within the US Department of Health and Human Services, which is the primary regulating body for food and drug substances
Upstream industries Industries related to raw material inputs / pre-manufacturing requirements
Downstream industries Industries related to post-manufacturing activities such as retail, wholesale and services; deals with distributing the product to the final customer
Source: Food and Drug Administration; Organisation for Economic Co-operation and Development; various LS-related websites; CBRE Research, Q1 2023

ANNEXURE III
Abbreviation Definitions
ABBREVIATION TERM
FULL FORM DEFINITION
kVA
BESCOM
DG
TR
KLD
MBR
NBC
HVAC
MERV
ASHRAE
STP
OWC
kN
Expansion
New entrants
Relocation
Consolidation & expansion
Relocation & expansion
Kilovolt-ampere
Bangalore Electricity Supply Company Limited
Diesel Generator
Ton of refrigeration
Kilo litres per day
Membrane Bioreactor
National Building Code
Heating, Ventilation, and Air Conditioning
Minimum Efficiency Reporting Value
American Society of Heating, Refrigerating and Air-conditioning Engineers
Sewerage Treatment Plant
Organic Waste Converter
Kilonewton
Additional space taken up within the same building or within the same city
Space taken up for the first time in a new city
Moving from one building to another within a micro-market or a city
Exiting from multiple buildings and taking up one space & increasing space
Moving to another building and increasing space take-up

Contacts
Research
Abhinav Joshi
Head of Research - India, Middle East & North Africa
abhinav.joshi@cbre.co.in
Sachi Goel
Head of South Operations, India
sachi.goel@cbre.co.in
Pradeep Nair
Senior General Manager
pradeep.nair@cbre.com
Karthiga Ravindran
Deputy General Manager
karthiga.ravindran@cbre.com
Madhura Taskar
Manager
madhura.taskar@cbre.com
Apoorva P
Analyst
apoorva.p@cbre.com
Ram Chandnani
Managing Director, Advisory and Transaction Services, India
ram.chandnani@cbre.co.in
Rajesh Prasad
Senior Executive Director- Advisory & Transaction
- Office Services
rajesh.prasad@cbre.co.in
Business Line Follow Us
Research
CBRE Research
© Copyright 2023. All rights reserved. This report has been prepared in good faith, based on CBRE’s current anecdotal and evidence based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this presentation, they are subject to significant uncertainties
and contingencies, many of which are beyond CBRE’s control. In addition, many of CBRE’s views are opinion and/or projections based on CBRE’s subjective analyses of current market circumstances. Other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause
CBRE’s current views to later be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change.
Nothing in this report should be construed as an indicator of the future performance of CBRE’s securities or of the performance of any other company’s securities. You should not purchase or sell securities—of CBRE or any other company—based on the views herein. CBRE disclaims all liability for securities purchased or
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CIN - U74140DL1999PTC100244

Business Line Contacts
Advisory & Transactions
Ram Chandnani
Managing Director,
Advisory & Transaction Services, India
ram.chandnani@cbre.co.in
Capital Markets
Gaurav Kumar
Managing Director & Co-Head,
Capital Markets, India
gaurav.kumar@cbre.co.in
Global Workplace Solutions
Rajesh Pandit
Managing Director,
Global Workplace Solutions, India & Property
Management, India, SE Asia, Middle East & North Africa
rajesh.pandit@cbre.co.in
Operations
Rajat Gupta
Managing Director, Operations, India
rajat.gupta@cbre.com
Consulting & Valuation
Rami Kaushal
Managing Director,
Consulting & Valuations, India, Middle East & Africa
rami.kaushal@cbre.co.in
Capital Markets
Nikhil Bhatia
Managing Director & Co-Head,
Capital Markets, India
nikhil.bhatia@cbre.co.in
Project Management
Gurjot Bhatia
Managing Director,
Project Management, India, SE Asia, Middle East & Africa
gurjot.bhatia@cbre.co.in

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