REAL ESTATE NEWS

Tishman Speyer's joint venture, Breakthrough Properties, has raised $430 million through a fund that will invest in life science properties not only in the United States but also in the United Kingdom.

This announced amount raised marks the first closing of Breakthrough Properties Growth Portfolio II. Family offices, investment advisors, pension funds and global asset managers contributed to the pool.

Breakthrough, a joint venture between Tishman and Bellco Capital, will target Class A life science assets in "leading innovation clusters" that hone in on "blended value-add return," according to the two partners.

Dan Belldegrun, CEO of Breakthrough, stresses that the current market represents the "most compelling investment window" it has seen in "years."

“Transitory market dynamics have generated the opportunity to acquire high quality assets at heavily disrupted pricing and to capitalize on the sector’s long-term structural tailwinds," he said.

"The incredible power of science is only accelerating, generalist investors are retreating and new supply is entirely shut off. We believe these are precisely the ingredients for a fantastic investment vintage. We’re grateful to our partners for supporting Breakthrough’s exciting next chapter.”

Overall, life science faces challenges in light of the National Institutes of Health cuts, whose budget will be reduced by about 40 percent due to the One Big Beautiful Bill Act passing.

While this adds uncertainty to the sector — Breakthrough has invested significantly in life sciences in the UK and US. Properties Growth Portfolio II piggybacks off the $3 billion that the real estate asset manager raised from its first life science investment fund, which held its final close in 2022. This fund was used to pour capital into a nearly six-million-square-foot development portfolio.

Some major projects Breakthrough has worked on include One Milestone in Boston and Torrey Heights in San Diego. Plus, over 60 percent of the Los Angeles-based firm's portfolio is leased to prominent pharmaceutical firms, including Pfizer, Eli Lilly, AstraZeneca and Bristol Myers Squibb. Breakthrough's life science assets include value-add conversions, purpose-built developments and core/core+ properties.

Breakthrough said that it intends to hold "subsequent closings" for Growth Portfolio II.

Source: GlobeSt/ALM