Lendlease, on June 20, announced that it has entered into a partnership with Dutch pension fund manager PGGM to create the Lendlease Innovation Limited Partnership.
The $1 billion partnership will invest in real estate assets in the innovation and life science space with a focus on Australia, Japan and Singapore.
Under the partnership, PGGM will hold an 85% stake while Lendlease will hold the remaining 15%.
Lendlease Group is made up of several businesses including Lendlease Trust and Lendlease Corporation, the sponsor of SGX-listed Lendlease Global Commercial REIT (LREIT).
Under the partnership, Lendlease will provide its services based on the assets’ needs, which include investment management and development management.
The partnership will leverage Lendlease’s expertise in placemaking by creating hubs of economic activity where innovation, entrepreneurship, creativity and placemaking intersect.
The partnership has already secured its first asset, a 12-storey freehold commercial property in Yokohama, Japan.
The property is located close to established clusters of high-tech, knowledge-intensive R&D and innovation operations in Yokohama’s Minato Mirai district. Minato Mirai is home to the R&D operations of companies such as Sony, Shiseido and Hyundai.
Justin Gabbani, CEO, Asia, Lendlease, says, “Technological advances and higher R&D spend, driven by an aging population, are signalling a growing demand for real estate hubs and development centres that are focused on research, innovation and advancing next-gen technology.”
“The establishment of an innovation-focused investment partnership together with our long term partner PGGM is a vote of confidence in Lendlease’s position as a global real estate and investment leader. This partnership also leverages our deep expertise in the life science sector with more than 20 years’ experience. We look forward to continue building our partnership with PGGM,” he adds.
Jikke de Wit and Ping Ip from PGGM Private Real Estate says the “increased focus on health combined with substantial investments in technology will give a boost to the innovation and life science sectors in Asia Pacific” in a joint statement.
“This focus on life sciences is supported by our client PFZW who manages a pension scheme for the Dutch healthcare sector with three million members. Our partnership with Lendlease which has been developing over 25 years gives PGGM a chance to build a portfolio of assets in the hubs where innovation, talent and knowledge come together. We are excited that we can leverage Lendlease’s ability to identify attractive opportunities in these markets and to benefit from their extensive experience in innovation, life sciences and their global leadership in these sectors.”