Ventas Life Science and Healthcare Real Estate Fund, L.P. has acquired a trophy life science portfolio in the premier South San Francisco life science cluster for $1.0 billion.
Ventas is the sponsor and general partner of the fund, which is a perpetual life vehicle focused on investments in core and core plus life science, medical office and senior housing real estate in North America.
The purchase price for the portfolio represents approximately a five percent capitalization rate on forward cash net operating income (NOI), said Ventas in a statement. ”The portfolio was acquired principally by the fund with a co-investment vehicle. Ventas has a 21 percent interest in the acquired portfolio. The acquisition was financed with over $400 million of attractive property level debt.”
The Class A trophy portfolio consists of a campus of three newly developed or renovated buildings totaling nearly 800,000 square feet. It is 96 percent leased with a weighted average lease term of over six years.
“We are pleased to further expand our growing research & innovation footprint into the premier South San Francisco life science cluster with the acquisition of this outstanding lab portfolio,” said Debra A. Cafaro, Ventas Chairman and Chief Executive Officer. “Strong and growing capital flows into the life science sector are accelerating innovation and discovery. These flows support the demand for first class lab space in dynamic markets like South San Francisco. Ventas now owns or has an investment in over seven million square feet of research & innovation properties located in the life science clusters of Cambridge, South San Francisco, and on the campuses of over 15 top tier research universities.”
“The Ventas Life Science and Healthcare Real Estate Fund has raised more than $1 billion of equity, with continued capacity to grow, and more than doubled its assets under management to $1.8 billion. The growth of the fund is a testament to the tremendous market opportunity across the healthcare sectors of life science, medical office and senior housing real estate,” added Cafaro. “Our stakeholders continue to benefit from Ventas’s capabilities, strategic reach and team.”
