Colonial Invests in Deeplabs, Spain’s Leading Science & Innovation Company, to Build a Pan-European Platform

Colonial has entered into a joint venture with Stoneshield Capital to create the leading pan-European real estate platform in Science and Innovation. As part of this alliance, Colonial is investing €200 million in Deeplabs, the market leader in Spain, which currently operates 138,000 sqm of purpose-built workspaces and facilities across three Science and Innovation campuses in Barcelona and Madrid. Deeplabs boasts a large, diversified, and high-quality tenant base, and aims to accelerate its pan-European expansion.

Pere Viñolas, CEO of Colonial, explained:
“We have long been developing urban transformation assets to drive growth and profitability. Today’s announcement is a natural extension of that strategy as we continue to position our core office portfolio alongside our growing mixed-use portfolio. There is a significant shortage of suitable assets in the European Science & Innovation sector, at a time when demand is rapidly and sustainably rising. With current supply unable to meet this demand, and a lack of real estate expertise to deliver high-quality lab spaces, we see a strong opportunity to build a pan-European platform that meets the needs of long-term, high-quality tenants. We look forward to working closely with our outstanding partners, Stoneshield Capital and Deeplabs, to deliver on this vision and generate value and strong returns for our shareholders.”

Juan Pepa, Managing Partner and Co-founder of Stoneshield Capital, added:
“Europe’s security budget is set to rise from €400 billion to €1.2 trillion by 2026. This unprecedented growth will unleash massive demand for space from companies looking to innovate, test, manufacture, and operate.”

Felipe Morenés, also Managing Partner and Co-founder of Stoneshield Capital, remarked:
“The need for strategic real estate is essential if Europe is to make progress in key sectors such as security, health, and technology. Our goal is to support governments and companies by providing highly specialized properties—critical infrastructure for innovation and operational success.”

Deeplabs Targets Rapid Pan-European Growth to Meet Demand

Founded in 2020, Deeplabs has successfully executed its strategy, building a €400 million portfolio of Science & Innovation hubs in Barcelona and Madrid, and establishing a leading position in Spain’s life sciences sector.

The platform aims to develop a Science & Innovation portfolio across strategic European hubs such as Paris, Cambridge, Amsterdam, Berlin, Munich, and Lisbon. Its medium-term goal is to exceed €2.4 billion in assets under management, fueled by third-party capital. A short-term pipeline of €700 million in assets has already been identified.

Strategic Infrastructure for Europe’s Scientific and Innovative Sovereignty

Demand for Science & Innovation real estate is growing, driven by demographic shifts, AI-powered technologies, and geopolitical dynamics. Europe is committing record R&D budgets to fuel its innovation economy, yet faces a structural shortage of suitable locations, due to the lack of real estate expertise needed to deliver purpose-built research and innovation facilities. Barcelona and Madrid are already thriving, fast-growing Science & Innovation hubs with ideal conditions for long-term success.

Combined Expertise of Colonial, Stoneshield Capital, and Deeplabs

This initiative brings together two market leaders with complementary strengths and a shared vision to provide high-quality research environments for long-term tenants, while generating value and superior returns for investors.

Colonial is a global urban transformation leader, with a significant mixed-use portfolio—including healthcare facilities—in Paris, Madrid, and Barcelona. It has a strong track record of delivering exceptional assets tailored to tenant needs.

Stoneshield Capital follows a long-term investment strategy, with a strong history of transforming assets in niche thematic sectors such as Science & Innovation ecosystems. Their sourcing and value creation capabilities have attracted institutional investors and demonstrated their ability to raise capital for platform growth.

Deeplabs has rapidly grown over the past four years to become the Spanish market leader in developing and managing Science & Innovation ecosystems. It combines sector expertise, operational knowledge, and a tenant-first approach to offer value-added services that encourage long-term occupancy.

Accelerating Colonial’s Mixed-Use Urban Transformation Strategy

The new joint venture and investment in Deeplabs aligns with Colonial’s vision of accelerating its urban transformation strategy. The company remains committed to serving clients through its existing prime office portfolio—an area in which it retains a leading market position and strong appeal.

This move enables expansion into high-growth sectors with rising demand, while remaining consistent with Colonial’s expertise and performance in delivering attractive returns. Colonial currently has around 200,000 sqm in active urban transformation projects, generating €100 million in rental income. These include:

• Scope Business Campus, Paris

• Condorcet, a mixed-use urban project in Paris

• Sancho de Ávila, life sciences and healthcare assets in Barcelona

• Santa Hortensia, a mixed-use urban project in Madrid

Expanding into high-growth Science & Innovation ecosystems is a logical next step in this development. It presents an opportunity to create thriving, high-quality campuses and scientific innovation hubs across a wide range of sectors—including wet labs, dry labs, and technical/research workspaces—all of which are in high demand from prospective tenants.

Colonial Remains Focused on Delivering Shareholder Value

This transaction and new joint venture will enable Colonial to continue delivering value to shareholders through strong returns. The deal is immediately accretive to earnings per share (EPS) and offers an attractive yield of 7–8% on cost, along with significant value creation potential through a net internal rate of return (IRR) of 15%.

As the investment vehicle grows beyond €2.4 billion in AUM through third-party capital, Colonial will benefit from enhanced EPS contribution and an uplift in net tangible assets (NTA). These are compelling returns that also offer diversification benefits—both in terms of asset type and geographical exposure—for Colonial investors.

Conclusion: Strong Growth Ahead for Science & Innovation in Europe

Colonial’s joint venture with Stoneshield Capital will drive expansion through Deeplabs, a leading platform, as part of its broader urban transformation strategy. Colonial’s dominant market position in Spain—with top-tier S&I campuses in Madrid and Barcelona—positions it to lead the European market as the first fully integrated Science & Innovation platform across geographies, with a valuable first-mover advantage.

The initiative will support the development of world-class scientific ecosystems designed to attract international talent and long-term high-quality tenants, while leveraging third-party investment. Colonial’s investment is expected to generate +15% net IRR, with increases in both EPS and NTA in the short and long term.