KKR is investing alongside WS Development and the Public Sector Pension Investment Board (PSP Investments) in a US life science tower currently under construction in Boston’s Seaport District.
KKR, which is investing on behalf of its core-plus real estate strategy, said it has made ”a major investment” in the 400 Summer Street asset and will co-own the 16-storey building project with WS Development and the Canadian pension investment manager.
Once completed, the 635,000sqft property will serve as the headquarters of biotechnology firm Foundation Medicine.
400 Summer Street is part of the 33-acre Boston Seaport development project led by WS Development.
Justin Pattner, KKR partner and head of real estate equity in the Americas, said KKR has a strong conviction in life sciences real estate and believes there will be lasting demand for high-quality lab and work space in the world’s top innovation centres.
”We are thrilled to be growing our portfolio of trophy life science assets with our investment in 400 Summer Street in Boston’s Seaport.
”In addition to our recent acquisition in San Francisco’s Mission Bay, we are now serving the two largest and most premier life science clusters in the US,” Pattner said.
Daniel Rudin, managing director at KKR, said: “This is a great addition to our portfolio as we continue to grow our presence in the Boston market and the life sciences sector more generally. The ability to work with PSP Investments and WS, a best-in-class group we have followed for some time is a great outcome.”
Jeremy Sclar, chairman and CEO of WS Development, said: “For decades, KKR has been one of the most innovative investment organisations in the world, and we couldn’t be more excited about their investment in 400 Summer Street in the Seaport, a neighbourhood that is home to some of the most forward-thinking and progressive employers, residents and retailers in the world.”
Carole Guerin, managing director, head of Americas, real estate investments at PSP Investments, said the Seaport District has become a tremendous ecosystem for innovation and growth.
”400 Summer Street, once completed, will further underpin the area’s commitment to the life science cluster.
”PSP Investments is proud to again partner with KKR, as well as to continue our relationship with WS Developments as we work together to nurture and support what is now a global hub of innovation and creative economy,” Guerin said.
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