Lendlease, Warburg Pincus establish APAC life sciences JV
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The news: Lendlease has completed the sale of its life sciences interests in Asia to a joint venture with Warburg Pincus to create a life sciences and research and development real estate platform.
The numbers: Each company will commit 50% of the co-investment capital over the next few years as the new platform targets third-party investors and additional capital, while seeking to grow into a "multi-billion-dollar platform".
Lendlease said the transaction is expected to contribute about $80 million to its FY25 operating profit after tax.
Lendlease shares were down 0.6% to $6.24 by 11:15am AEST.
The context: Headquartered in Singapore, the new platform will focus on investing, acquiring, developing, constructing, managing, and operating real estate projects in the life sciences and R&D real estate markets in Asia Pacific.
The platform is seeded with two of Lendlease’s existing businesses — a high-barrier-to-entry life sciences project construction management business and a specialised investment management business. It also has its first investment vehicle LINO, which currently owns Leaf Minatomirai, a 24,000 square meter innovation and R&D workplace in Yokohama, with its asset enhancement initiative recently completed.
What they said: Takashi Murata, managing director, co-head of Asia real estate and head of Japan at Warburg Pincus, said: "We firmly believe the life sciences and R&D real estate industry presents a tremendous opportunity for outsized growth in Asia Pacific.
"This investment is consistent with Warburg Pincus’ approach of investing capital and resources alongside best-in-class entrepreneurs to create de novo platforms to capture the high-growth opportunities in the region.
"We are excited to partner with Lendlease, which shares our conviction in the industry, and believe that our in-depth expertise and extensive network and resources in the real estate and healthcare sectors will help the joint venture accelerate its growth and create value for its stakeholders."
Lendlease CEO of investment management Justin Gabbani said: "We are looking forward to embarking on this journey with Warburg Pincus as we seek to establish the Asia Pacific’s leading life sciences and R&D real estate investment platform."
"Lendlease will leverage its expertise in supporting the world’s largest pharmaceutical and life sciences companies, together with Warburg Pincus’s global experience, resources and strong track record in investing and scaling platforms in Asia," he said.
The sources: Lendlease media release, ASX announcement
