Courtesy Ivanhoé Cambridge Inc.
Ivanhoé Cambridge is teaming up with Australian real estate firm Lendlease to put together a $500 million joint venture aimed at developing labs, offices, and manufacturing spaces in some of the fastest-growing life sciences hubs across the U. S.
The key locations they’re focusing on include Boston, the San Francisco Bay Area, San Diego, New York/New Jersey metro area, Philadelphia, Chicago, Los Angeles, and Orange County.
“We are pleased to launch this new investment vehicle for new life science projects with a partner with whom we share the same vision and who has a proven track record of delivering high-quality sustainable innovative projects,” Jonathan Pearce, senior vice-president of leasing and development for Ivanhoé Cambridge North America, said in a statement.
“This partnership will also allow Ivanhoé Cambridge to expand its footprint in the life sciences sector, which has fundamental principles for long-term growth while supporting the strategic diversification of our portfolio.”
Although they’re starting off with $500 million equity funding, both companies plan to grow this venture as time goes on.
Ivanhoé Cambridge Holds Majority Stake
Ivanhoé Cambridge will hold the majority stake while Lendlease takes charge of development and construction management on all sites.
“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,” said Denis Hickey, Lendlease’s global COO and CEO of the Americas in a statement.
This announcement builds on their earlier collaboration announced back in March 2021.
Back then they unveiled their first co-development project at 60 Guest Street in Boston. It’s set to break ground this spring with completion targeted for 2024.
The nine-story building covers 320,000 square feet over 1.15 acres within the Boston Landing campus. It includes cutting-edge lab space along with offices and amenities designed for tenants’ needs.
The Boston Landing area is already home to New Balance’s global HQ plus sports facilities like the Celtics’ Auerbach Center and Bruins’ Warrior Ice Arena. There’s also an indoor track venue plus entertainment spots alongside residential buildings and plans for a 175-room hotel.
The whole project is expected to be worth around $500 million once it wraps up.
A Bit About Ivanhoé Cambridge & Lendlease
Ivanhoé Cambridge owns interests through subsidiaries and partnerships in over 1,100 properties mostly spanning industrial/logistics along with office spaces, residential units and retail centers. At end of 2020 their real estate assets were valued at about $60.4 billion.
This January saw them reorganize into five global hubs: United States & Latin America; Canada; Quebec; Europe; Asia-Pacific – part of some structural changes they rolled out recently.
A few weeks ago they also revealed a joint investment deal with Dutch pension fund APG. Together they’re backing Taronga Ventures’ Real Tech Ventures I fund focused on built environment tech based out of Australia/Singapore. Both are involved in Taronga’s ESG impact innovation program that’s rolling out across Asia over next two years too.
Ivanhoé Cambridge operates as Caisse de dépôt et placement du Québec’s real estate arm.
Lendlease has already completed work on more than 500 life science facilities across the U. S., adding up to roughly 18 million square feet total. These projects include everything from brand-new buildings to renovations or conversions covering labs as well as large-scale production plants.
The company is headquartered down under in Sydney but employs around 10,800 people spread throughout Asia, Europe and the Americas regions alike.
Apart from life sciences stuff they invest across arts & culture sectors plus aviation commercial properties education energy government healthcare hotels & resorts industrial military communities mixed-use multi-site residential senior living transportation urban regeneration markets too.
