L&G Capital and Ancora launch $4bn US life sciences platform

L&G Capital has agreed a deal with US real estate developer Ancora to launch a $4bn (£3.2bn) platform to fund life sciences and technology assets across regional US markets. The move follows L&G’s involvement in establishing and scaling up life sciences and tech businesses in the UK through its Bruntwood SciTech joint venture. It will look to replicate the model across the US. The 50:50 jv will see the creation of Ancora L&G, with an initial investment of $500m to be made by L&G Capital. Wes Erlam, director of urban regeneration at L&G Capital (pictured), told EG that the US “feels like an appropriate entry point”. He added: “This was quite a rare opportunity to partner with somebody who was aligned with the way we see the marketplace. “It’s about building the pipeline together, using the power of the L&G brand and local specialists to maximise the opportunity in the US. The focus is to find high-quality projects across the US where we can show value and demonstrate to investors that we have got the team that is able to deliver.” Ancora L&G’s target markets will be principally focused on the East Coast, with Boston and San Diego named as the most desirable locations. The firm noted its asset search is largely led by the quality of the surrounding educational institutions rather than simply looking at the “hottest spots” for life sciences and tech. Erlam said: “The biggest challenge is to make sure that we have got the credible pipeline and the team in place to deliver.” Ancora L&G will be led by Josh Parker as chief executive, alongside John Philipchuck as chief investment officer, Jeff Kingsbury as chief connectivity officer and Nicole Morrill as chief real estate officer. In addition, LGIM America’s Kristina St Charles will take on the role of general counsel and L&G’s Sujee Rajah will become chief finance officer. “From day one there will be a combination of executive resources working together,” Erlam said. “There is a significant hiring plan as we grow the business.” In order to support future growth, L&G Capital is seeking third-party co-investment partners. Initially the firm will be looking for investors to come on board for specific projects, with potential to extend that partnership. “An aspiration of the business is to get to a $4bn platform over a number of years, so I think there will be a combination of different capital sources coming through over the next few years,” Erlam said. “We are hugely ambitious and will absolutely be looking to grow, including in Asia, Europe and more in the US. [Ancora L&G] is just the start.”   To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @Gre_Eve or @EGPropertyNews