Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners, LLC (Greystar) have formed a new joint venture to develop Class-A life science office and lab buildings in leading U.S. life sciences markets.
CPP Investments and Greystar have allocated an initial US$1.2 billion in equity to the joint venture. Greystar will develop and manage the portfolio on behalf of the joint venture.
As part of the program, the joint venture has acquired 74M, an office and lab development project located in Somerville, Massachusetts.
CPP Investments will own a 90% stake in the project and Greystar will own the remaining 10%.
“The U.S. life sciences sector continues to grow and evolve, with increasing demand for purpose-built lab and office space that is designed to market leading technical specifications,” said Peter Ballon, Managing Director, Global Head of Real Estate, CPP Investments. “The acquisition of 74M expands our global life sciences strategy into the U.S. market and provides a solid foundation to this new program with Greystar, a top-tier partner with a proven development track record.”
The recently acquired 74M is a 468,000 square-foot, 18-storey office and lab development located in a vibrant live-work community in close proximity to East Cambridge, the world’s leading life science and technology cluster. The property is expected to achieve LEED Platinum and WiredScore Platinum certifications. Construction on the project is targeted to begin in calendar year 2021 and will be managed by Greystar.
“The investment management and development platform Greystar has built in the U.S. is unmatched, and the opportunities in life sciences offer another sector where we can build an in-house team of experts and help match the supply with the demand,” said Bob Faith, Founder, Chairman, and CEO of Greystar. “We look forward to partnering with CPP Investments not just on our acquisition of 74M, but in other research clusters across the country where people want to live and work and where we can draw upon our local expertise.”