REAL ESTATE NEWS

KKR is now diving into San Diego's life science sector, making a $475 million investment in Alexandria Real Estate Equities, Inc.'s almost 2 million square foot campus. For KKR, this isn't an entrance into life science — but it's an interesting play at a time when the sector has been running hot in the city, at least to begin the year.

The move, according to a statement by Alexandria, acts a joint venture, in which KKR will take a 49 percent minority stake. The investor will also get 28.5 percent indirect ownership in the venture, covering the property Campus Point by Alexandria Megacampus.

Eastdil Secured Savills served as the financial advisor on the deal. Legal advisement was provided by both Gibson Dunn (representing KKR) and Proskauer (backing Alexandria).

Supporting Leasing And Improvements

The transaction takes care of two needs for the two parties. For Alexandria, it gives it an investor to support leasing, continued development and upgrades at the campus.

"This transaction marks an important step in our efforts to optimize our capital structure and unlock value across our portfolio," Peter Moglia, Alexandria's CEO and chief investment officer, said in a statement.

"Our strategic partnership with KKR demonstrates the attractiveness of our high-quality assets to leading institutional investors and provides a flexible, long-term source of capital to support our continued investment in our Campus Point Megacampus. We believe this investment positions us to execute our business plan while creating long-term value for our shareholders."

Campus Point already has long-term lease commitments from top institutional and corporate companies, accounting for roughly 98 percent of the revenue at the site. Tenants at the property include Bristol Myers Squibb, Eli Lilly, Novartis, Leidos and UC San Diego.

Expansion for KKR In Life Sciences

The other need for KKR is an opportunity to expand in life sciences and healthcare. In June 2025, the New York-based firm acquired HealthCare Royalty Partners, which manages roughly $3 billion in assets across biopharma. At the time, KKR said it had invested $20 billion in the sector since 2004.

But now KKR's new investment is not only in the property — but in the strength of San Diego's life sciences market. According to JLL's first-quarter report on the market, venture capital is at its strongest pace in five years. Also, absorption was positive for the first time in nearly three years.

The exact plans are unclear at Campus Point — but Alexandria will continue to have control over the site and make decisions on how to guide the next phase of growth at the property. The investment, though, offers more to support the property.

Source: GlobeSt/ALM