Norway’s Government Pension Fund Global (GPFG), MetLife Investment Management and Alexandria Real Estate Equities have formed a joint venture to recapitalise a life-sciences real estate portfolio in the US for $1.2bn (€1.06bn).

The Norwegian sovereign wealth fund has taken the largest stake, paying $486m to acquire a 41% interest in the buildings at 50 Binney and 60 Binney in Cambridge, Massachusetts.

Alexandria developed the 10-storey, class-A office and lab buildings in 2017, and affiliate of the company has taken a 34% stake in the joint venture, while MetLife is to own the remaining 25%.

The 532,395sqft portfolio is fully occupied by life-sciences and retail tenants.

Ashleigh Simpson, regional head of acquisitions and joint ventures at MetLife, said: “As life-sciences real estate continues to experience heightened demand, we’re excited to add highly coveted properties to our portfolio that were purpose-built to meet the shortage of suitable office and lab space.”

Norges Bank Investment Management (NBIM), which manages GPFG, said the assets were unencumbered by debt and no financing was involved in the transaction.

Last June, as part of a 10-year review of GPFG’s real estate investments, NBIM said it expected to diversify the portfolio and was likely to move into new sectors such as residential and life sciences.

This week, NBIM concluded that the sovereign wealth fund’s 10-year real estate investment programme was unlikely to have added to its total return over the decade.