Multifamily giant Greystar has agreed its first commercial development as part of a $1.2bn (£870m) life sciences joint venture with Canada Pension Plan Investment Board.
After 30 years in residential, the landlord has diversified with a new partnership funding life science office space and lab buildings in leading US markets.
The jv has agreed its first acquisition at 74M, a 468,000 sq ft, 18-storey office and lab development project in Somerville, Massachusetts, which is located close to the life science and tech cluster at East Cambridge.
CPPIB will own a 90% stake in the project and Greystar will own the remaining 10%. Construction is due to begin this year.
Greystar will develop and manage the portfolio on behalf of the joint venture.
Bob Faith, founder, chairman and chief executive of Greystar, said: “The investment management and development platform Greystar has built in the US is unmatched, and the opportunities in life sciences offer another sector where we can build an in-house team of experts and help match the supply with the demand.”
Peter Ballon, managing director and global head of real estate at CCP Investments, added: “The US life sciences sector continues to grow and evolve, with increasing demand for purpose-built lab and office space that is designed to market-leading technical specifications.
“The acquisition of 74M expands our global life sciences strategy into the US market and provides a solid foundation to this new programme with Greystar, a top-tier partner with a proven development track record.”
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