Norges Bank Investment Management (NBIM) is investing $746.4m (€696m) for a 45% stake in two life-science property projects being developed by US office real estate manager BXP.

NBIM, which manages the Norwegian sovereign wealth fund, is acquiring the interest in the 300 Binney Street and 290 Binney Street projects located in Kendall Square in the City of Cambridge in the Boston metropolitan area.

NBIM said it will pay an initial $212.9m to BXP and has committed to a total project cost of $746.4m to the 810,000sqft project which is expected to be worth $1.66bn.

The assets are unencumbered by debt and no financing was involved in the transaction, NBIM said.

Mie Holstad, chief real assets officer at NBIM, said: “We are very pleased to grow our portfolio in Greater Boston. The investment aligns with our long-term strategy, and we are delighted to strengthen our partnership with BXP in a sector where we have high conviction.”

NYSE-listed premier workplaces property firm BXP will retain the remaining 55% interest in the assets and will manage the properties on behalf of the partnership.

Dominic DeNunzio, senior investment manager of real estate at Norges Bank Investment Management, said: “This investment extends our dynamic partnership with BXP into two best-in-class life sciences properties in Kendall Square, the premier US life-science cluster, and adds two of the most innovative tenants in the world in their respective fields to our portfolio.”

Owen Thomas, chairman and CEO of BXP, said: “We are delighted to deepen our longstanding partnership with NBIM. Their meaningful investment in BXP’s newest life-sciences development in the heart of Kendall Square demonstrates the value placed by investors on well-located, well-leased premier workplaces with strong stewardship.”

Cole Pinney, VP of joint venture client relationships at BXP, said: “BXP’s newest joint venture with NBIM solidifies what is already a key strategic partnership. We look forward to continued collaboration between our organisations.”

To read the latest IPE Real Assets magazine click here.