The Canada Pension Plan Investment Board (CPP Investments) and Greystar Real Estate Partners have formed a new joint venture to pursue life science real estate development opportunities. Initially, the companies have allocated $1.2 billion in equity to the joint venture to develop Class-A life science office and lab buildings in top US life science markets. Greystar will develop and manage the JV portfolio.

The joint venture has acquired 74M, a 468,000 square-foot, 18-story office and lab development located in Somerville, Mass. The building is close to East Cambridge, one of the world's leading life science and technology clusters. CPP Investments will have a 90% stake in the project and Greystar will own 10%. Construction on the project, which is expected to achieve LEED Platinum and WiredScore Platinum certifications, should begin in calendar year 2021 and will be managed by Greystar.

"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," said Peter Ballon, managing director and global head of Real Estate for CPP Investments, in a prepared statement.