Norges Bank Investment Management (NBIM), which is responsible for the investments of Norway’s Government Pension Fund Global (GPFG), has agreed to acquire a 45 per cent interest in two life sciences properties.

The properties in the city of Cambridge in the Boston metropolitan area in the US were acquired in a joint venture with BXP.

NBIM’s investment consists of two life sciences properties, one of which is under redevelopment and the other is under development from the ground up.

It acquired its 45 per cent stake for an initial payment of USD 212.9m to BXP and has committed to a total project cost of USD 746.4m.

Upon completion, the total capitalisation from the venture is projected to be USD 1.66bn.

The assets are unencumbered by debt and no financing was involved in the transaction.

The transaction agreements were signed on 13 November 2023 and the deal was closed on the same day.

BXP, the seller of the properties, will retain the remaining 55 per cent interest in the assets and will manage the properties on behalf of the partnership.

One property is pre-leased to AstraZeneca, while the other is pre-leased by The Broad Institute.

“We are very pleased to grow our portfolio in Greater Boston,” said NBIM chief real assets officer, Mie Holstad.

“The investment aligns with our long-term strategy, and we are delighted to strengthen our partnership with BXP in a sector where we have high conviction.”

NBIM senior investment manager real estate, Dominic DeNunzio, added: “This investment extends our dynamic partnership with BXP into two best-in-class life sciences properties in Kendall Square, the premier US life science cluster, and adds two of the most innovative tenants in the world in their respective fields to our portfolio.”

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