Ivanhoé Cambridge, Lendlease to Invest in Life Science Developments

Global real estate investor Ivanhoé Cambridge and developer Lendlease have launched a life science joint venture that will deliver labs, offices and manufacturing spaces in high-growth life science clusters across the US.

Investment in US life sciences real estate is poised to grow another 10% minimum this year, according to recent research from CBRE’s capital markets team.

That’s on top of a whopping 62% increase last year. Investment in life sciences real estate reached $21.4 billion in 2021, CBRE says, and investment in the sector has grown by 111% since 2018.

Ivanhoe Leveraging Recent Success

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.

“This partnership will allow Ivanhoé Cambridge to deepen its footprint in the life science sector, which has long-term growth fundamentals,” Jonathan Pearce, EVVP, Leasing and Development, North America at Ivanhoé Cambridge, said in prepared remarks,

Ivanhoé Cambridge and Lendlease’s first joint life science development project, 60 Guest Street in Boston, 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 lab and office space as well as a robust amenity program.