Legal & General Capital (LGC) has established a 50:50 partnership with U.S.-based real estate developer Ancora to invest in life science and technology assets across multiple regional U.S. markets.
The deal will see Legal & General Capital investing an initial $500 million of seed capital to form a new company, Ancora L&G, LLC.
Operating under the name Ancora, the business’ geographic focus will sit predominantly within emerging regional markets in the U.S. where early mover advantages are available.
Ancora will be capitalized by LGC to deliver $4 billion (£3.2bn) of existing pipeline and planned acquisition and development activity over the next five years.
To support future growth, LGC is seeking third party co-investment partners to accelerate scaling the portfolio. As with other LGC investments, LGC aims to finance longer term cashflows and use them to back Legal & General’s annuity business, providing better value for policyholders and greater options for investors.
LGC has a strong track record of establishing and scaling up innovative businesses and has led the way in driving science and technology growth through its Bruntwood SciTech partnership, the UK’s leading developer of innovation districts. Bruntwood SciTech has quickly expanded over 11 UK locations, a model LGC will look to replicate across the U.S.
Laura Mason, CEO of Legal & General Capital: “Through our partnership with Ancora, we will be able to leverage Legal & General’s significant experience in the science and technology sector in a new international market with strong growth potential. Remaining committed to investing in the real economy to create a better society over the long term, for the first time we take this ethos to an international level beyond the UK’s town and city centres.”
Josh Parker, Chairman and CEO of Ancora L&G: “Ancora’s ability to deliver Real Estate for What’s Next that serves the needs of our anchor institution partners will be accelerated by this new venture with Legal & General. We can meet any anchor institution requirement with an experienced team and strong capital base aligned with the timelines and aspirations of universities, academic medical centers, government, and research centers.”
Parker added, “Our team is excited to leverage the deep capital base of Legal & General and third-party clients to offer new investment options for our university partners, and we are eager to deliver activated districts of research and innovation that will enhance local economies across the United States. “
