Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners have teamed up to invest an initial $1.2bn (€1.01bn) in US life science real estate development opportunities.
The newly created joint venture has acquired 74M, a 468,000sqft office and lab development project located in Somerville, Massachusetts.
CPP Investments, which manages the C$497.2bn (€334.3bn) funds of the Canada Pension Plan, will own a 90% stake in the project and Greystar will own the remaining 10%.
Peter Ballon, managing director, global head of real estate at CPP Investments, said: “The US 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.
“The acquisition of 74M expands our global life sciences strategy into the US market and provides a solid foundation to this new program with Greystar, a top-tier partner with a proven development track record.”
Bob Faith, founder, chairman, and CEO of Greystar, said: “The investment management and development platform Greystar has built in the US 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.
“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.”
Construction on the project is expected to begin this year and will be managed by Greystar.
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