MONTRÉAL and NEW YORK — Ivanhoé Cambridge, a global real estate investor, and Lendlease (ASX: LLC), a leading global real estate and investment group, announced they joined forces to launch a new life science joint venture that will deliver state-of-the-art labs, offices and manufacturing spaces in high-growth life science clusters across the U.S.
Leveraging the success of their partnership to develop 60 Guest Street in Boston, Lendlease and Ivanhoé Cambridge plan to invest an initial $500 million of equity with aspirations to grow the portfolio through additional equity investments over time.
The partnership will focus on development opportunities while exploring retrofits in select clusters; more specifically Boston, San Francisco Bay Area and San Diego markets, with additional targets including the New York/New Jersey metropolitan region, Philadelphia, Chicago, Los Angeles and Orange County.
Ivanhoé Cambridge will be the majority partner in the venture while Lendlease will lead development and oversee construction on all projects, incorporating both firms’ aggressive sustainability goals.
“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,” said Jonathan Pearce, Executive Vice President, Leasing and Development, North America at Ivanhoé Cambridge. “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.”
“This partnership brings together Ivanhoé Cambridge’s world-class investment expertise with our experience operating across the life sciences sector,” said Denis Hickey, Global Chief Operating Officer and Chief Executive Officer – Americas at Lendlease. “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. The nine-story, 320,000-square-foot life science facility in Boston’s Allston/Brighton neighborhood will include state-of-the-art lab and office space as well as a robust amenity program.
To date, through its Construction business, Lendlease has completed more than 500 life science facilities in the U.S. together comprising approximately 18 million square feet. These projects, which include ground-up developments, renovations and conversions, range in size from individual labs to large-scale manufacturing plants.