Thursday 27 July 2017

World-class biotech facility for sale after major upgrade

The biotech plant
The biotech plant
Fort Gary offices
The quality control building for sale

Donal Buckley

Property investors and bio pharma companies are being offered an opportunity to acquire a world class biotech vaccine manufacturing complex at Finisklin Industrial Estate, Sligo, at a fraction of the investment which went into the operation.

Neither the vendor Elanco, a division of Eli Lilly and Company, or agents CBRE are offering a guide price on the manufacturing and office facilities.

However it is also believed that the price per sq ft could be well above that which might be attained by vacant warehouses in the area. 

Elanco acquired it in 2010 and undertook an extensive capital investment and upgrade program over the next six years, including a multi-million extension to the manufacturing building in 2012, adding fermentation, formulation and fill capabilities.

Of the three building at least two may appeal to an investor who has the ability to find a tenant who requires the equipment available in the complex. With such a tenant in place, the properties could then generate a yield which might be attractive to a broader range of property investors

During its ownership, Elanco formulated and packaged a range of veterinary vaccines for world-wide markets. Elanco decided to close it facility which employed about 100 people and it is believed that it may do a deal to attract a replacement employer.

One of the buildings is the biotech manufacturing Good Manufacturing Practice sterile parenteral facility which is held under a 999 year IDA lease from January 1999 and available to purchase. It extends to 3,661 sq. m on a 4.4 acre site which also offers scope for expansion. With the capacity to support a variety of biotechnology processes, the decommissioned EU GMP property retains substantial specialist equipment allowing immediate occupation and rapid ramp-up time for future operators.

The second building, QC, specialised in quality control and extends to 509 sq. m on a 0.29 acre site. It is also held under a similar 999 year lease and is available to purchase. It accommodates high quality, fully fitted, laboratory spaces including chemical and environmental and process development.

The third building, known as Fort Gary is held under a 10 year lease from December 2013 and available via sub-lease or assignment. It comprises three storey office accommodation and warehouse / packaging space extending to 4,739 sq. m on a secure 1.8 acre site. Elanco is currently paying a rent of €501,878 a year on a lease which dates from December 2013. Its internal layout includes open and private offices, meeting rooms, canteen and a large boardroom.

Mr Reynolds expects this complex to have very strong appeal to both national and international pharmaceutical end users and contract manufacturing organizations.

Finisklin Business Park is a 131 acre IDA Ireland campus situated just 1km west of Sligo Town Centre and the park  caters for an extensive array of multi-national clients.

Global healthcare company Abbott recently announced a €10 million investment in Finisklin as part of Abbott’s relocation and consolidation strategy, where they plan to create a medical nutrition device centre of excellence.

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