Breakthrough Properties Raises $1 Billion for Life Science Real Estate Investments
On November 23, 2020, it was announced that Breakthrough Properties ("Breakthrough"), a joint venture formed in 2019 by Tishman Speyer and Bellco Capital ("Bellco"), has completed the initial closings of the Breakthrough Life Science Property Fund (the "Fund"). The venture has, in aggregate, raised over $1 billion in capital for the Fund and in co-investments. Breakthrough is seeking additional capital, including for the perpetual life real estate investment vehicle that was created as part of the Fund, to build a portfolio of world-class life science research properties.
The Fund seeks to develop and acquire cutting edge lab facilities across leading biotechnology markets around the world. The Breakthrough Properties team will leverage the market expertise and vast relationship networks of Tishman Speyer, Bellco Capital and the Breakthrough team to quickly scale a best-in-class portfolio and deliver full-service ecosystems to meet the evolving needs of life science innovators.
Supported by the firms' combined resources, the Fund intends to create dynamic environments that foster collaboration among life science industry leaders and strategic research institutions, with the goal of enabling entrepreneurs and researchers to make potentially life-changing discoveries at every stage of development. These environments are expected to include best-in-class physical infrastructure, with a curated tenancy, collaborative amenities and services and dynamic tenant spaces that meet the needs of early, mid and late stage companies as they work to develop new medical treatments.
The Fund's initial closings come after Breakthrough announced in July that a leading gene editing company, CRISPR Therapeutics, signed a 263,500-square-foot lease agreement for "The 105," a new development located at 105 West First Street in Boston, which is scheduled for completion in early 2022. The full-building lease transaction was executed just one year after site acquisition in July 2019 and four months after groundbreaking.
Breakthrough's Co-Founder and Chief Executive Officer Dan Belldegrun said, "Breakthrough is ideally positioned to support a new era in life sciences and help innovators around the globe pursue life-changing discoveries. We are excited to have established our primary property investment vehicle with dedicated partners that will enable us to act quickly on future opportunities."
Tishman Speyer President & CEO and Breakthrough Co-Founder Rob Speyer commented, "The demand for modern facilities for life sciences research is enormous. Looking ahead, we intend to be a major provider of best-in-class specialized centers - providing a complete ecosystem of support for real innovators pursuing scientific breakthroughs. Our life sciences property program is off to a strong start with The 105, and other investments in the pipeline."
Bellco Chairman and Breakthrough Co-Chairman Arie Belldegrun, M.D., FACS, said, "The life science industry has experienced unprecedented productivity, innovation and scientific discovery in recent years as biotechnology and technology have been converging. The events of 2020 have further fueled the need for scientific innovations. With Breakthrough, we have created a unique platform for delivering mission critical facilities for these companies and life science entrepreneurs that support their focus on creating new therapies that change how we fight disease and improve lives for generations to come."
You can read the full press release here.
