Alexandria lands on MaRS
Yesterday was the day of buzz at MaRS: media, luminaries, sparkles — all fuelled by the excitement of launching Phase II of MaRS Centre development.
Construction sites are a prominent feature of the landscape in Toronto these days. So what is the big deal about this one?
For me, as an insider, the answer is obvious: MaRS was just a concept seven years ago, and it took almost three years to bring together a consortium of private and public entities to fund the development of MaRS Phase I. In other words, the perceived risk of building a premier technology commercialization centre in the City of Toronto was just too much to stomach for any private developer.
MaRS Centre has been operational now for two years. The vision of MaRS is becoming a tangible reality for our many clients and partners. Clearly, these two years did something to reduce the risk profile of the ambitious project of turning great Canadian science into great Canadian companies.
Alexandria is a publicly traded REIT (ARE), so nobody would question their commercial pedigree as a real estate developer. The interesting part is that capital markets view Alexandria as a growth play by awarding a P/E of 44.8 versus industry average of 25.5. (For what it’s worth, ARE’s stock was up 1% post MaRS announcement, so we are off to a good start.)
To me, the partnership with Alexandria is not only a validation of our vision, but also a first step in executing a new game plan. As a self-professed deal junkie, I can’t wait to put the celebrations behind us and dive into constructing unique growth opportunities from the asset base of this powerful partnership.
Additional information:
Veronika Litinski coordinates the MaRS venture services programs delivered to entrepreneurs, investors and high-growth companies. She also provides advisory services to entrepreneurs and high growth companies, with a special focus on life sciences markets, specializing in corporate finance and business development.