Longfellow Real Estate Partners has exchanged agreements to enter into a partnership with the Public Sector Pension Investment Board (PSP Investments) and Norges Bank Investment Management (NBIM) to invest in and develop innovative life science real estate in key UK markets.
The partnership between the three parties is expected to complete in November and is targeting a £1.5bn venture focused on investing in life science and innovation real estate across the UK, with a particular emphasis on the Golden Triangle markets of Cambridge, Oxford, and London.
The Golden Triangle has developed into one of the leading innovation clusters in the world, anchored by globally significant universities, research institutes and teaching hospitals, a high-quality talent pool, access to capital, and a broad range of exciting start-up, growth and blue chip companies.
Within the initial phase of the partnership, NBIM will join PSP Investments and Longfellow in the ownership of Capital Park Cambridge, which was acquired in May 2022.
Norges Bank Investment Management will acquire a 48.75 percent interest in the property.
NBIM will pay £90.2 million for its 48.75 percent ownership interest, valuing the property at £185 million.
PSP Investments will retain a 48.75 percent interest in the property, and Longfellow, a real estate investment company founded in Boston, Massachusetts,, will own the remaining 2.5 percent interest.
Longfellow will perform the asset management on the property on behalf of the joint venture.
This 42-acre campus, located in Cambridge, UK, provides approximately 245,000 square feet of innovation-focused workspace that is home to a dozen companies from sectors including fintech, agtech and biotech, through to patent law and the NHS.
Cambridge is a high-functioning ecosystem where research excellence, a deep base of skills and an open culture combine with a sophisticated investment environment, and the UK’s most mature life science real estate market to create a dynamic environment for industry-academic-clinical collaboration and innovation.
“The joint venture with Norges Bank Investment Management and PSP Investments is evidence of the strength of Longfellow’s life science real estate platform and focus,” said Longfellow Real Estate Partners Co-Founder & CEO, Adam Sichol. “Together we see the opportunity to create thoughtful, world class space to support a range of occupiers across the UK’s life science and innovation ecosystems.”
Jayesh Patel, Head of UK Real Estate, Norges Bank Investment Management commented, “We look forward to working with Longfellow and PSP Investments over the long-term in the UK life science sector.”
“We are pleased to have reached agreement to welcome NBIM to the life sciences partnership with Longfellow,” said Stéphane Jalbert, Managing Director, Head of Asia-Pacific and Europe, Real Estate Investments, PSP Investments. “This venture will allow us to invest at scale in the fast-evolving life science sector, helping creating ecosystems where corporates, universities, and start-ups are forming clusters that enable knowledge sharing and innovation.”