Ivanhoé Cambridge and Lendlease have invested an initial $500m (€432m) to create a US life science real estate investment joint venture.

The companies said the partnership will source new development and redevelopment opportunities to create a portfolio as it targets established and emerging life science clusters like the Boston, San Francisco Bay Area and San Diego markets.

Ivanhoé Cambridge will be the majority partner in the venture while Lendlease will lead development and oversee construction on all projects.

The plan is to grow the portfolio through additional equity investments over time.

Jonathan Pearce, executive VP, leasing and development, North America at Ivanhoé Cambridge, said: “We are excited to launch this new investment vehicle for ground-up life science projects with a like-minded partner that has the proven track record to deliver high-quality sustainable innovative projects.

“This partnership will also allow Ivanhoé Cambridge to deepen its footprint in the life science sector, which has long-term growth fundamentals while supporting our organization’s strategic portfolio diversification.”

Denis Hickey, global COO and CEO - Americas at Lendlease, said: “Together, we are uniquely positioned to deliver state-of-the-art lab, office and manufacturing space while expanding development capabilities in a high-growth asset class.”

Ivanhoé Cambridge and Lendlease’s first joint life science development project, 60 Guest Street, is scheduled to break ground in spring 2022, with completion expected in 2024.

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