Lendlease in $1b real estate tie-up with Dutch pension fund manager

Australia-listed real estate group Lendlease announced yesterday that it will be entering into a partnership agreement with PGGM, a pension fund manager based in the Netherlands, with an investment of $1 billion.

The new collaboration, coined Lendlease Innovation Limited Partnership, will see PGGM holding an 85 per cent interest, while Lendlease holds the other 15 per cent.

The funds invested into the partnership will be used for investments in "real estate assets in the innovation and life science space", specifically in Australia, Japan and Singapore, said Lendlease in its press release.

Lendlease said it will be providing services to the partnership based on the assets' needs, including investment management and development management.

At the time of its announcement, Lendlease said it had already secured its first asset in Yokohama, Japan. The 12-storey freehold property, listed for commercial use, is located close to "clusters of high-tech, knowledge-intensive R&D (research and development) and innovation operations in Yokohama's Minato Mirai district", said Lendlease.

Minato Mirai, a seaside urban area, is also home to the R&D operation offices of Japanese brands such as Sony and Shiseido.

"Technological advances and higher R&D spend, driven by an ageing population, are signalling a growing demand for real estate hubs and development centres that are focused on research, innovation and advancing next-gen technology," said Mr Justin Gabbani, chief executive for Asia at Lendlease.

Partners Jikke de Wit and Ping Ip from PGGM Private Real Estate said they believe 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.

THE BUSINESS TIMES