This article is from the Australian Property Journal archive
LENDLEASE and Warburg-Pincus have minted their new joint venture platform with the S$1.6 billion acquisition of life sciences, technology, advanced manufacturing and logistics assets in Singapore.
The 50-50 joint venture was launched at the end of July, with Lendlease bringing in the New York-headquartered private equity firm into an Asia-Pacific life sciences and R&D platform as it sought to reshape its business with the broad exit of its international operations to focus on its local projects.
The Singapore assets, the first acquisition for the venture, were picked up together with managed investment vehicle LINO, from entities associated with Blackstone and Lim Chap Huat, executive chairman of Soilbuild Group Holdings Ltd.
“This represents one of the largest transactions of a private portfolio of industrial assets in Singapore,” Lendlease said.
The portfolio has a gross floor area of 4.5 million sq ft, or around 418,000 square metres, and comprises quality business parks and specialist facilities situated within established designated precincts across Singapore, tenanted to blue-chip companies across life sciences, technology, advanced manufacturing and logistics, Lendlease said.
The platform now has S$2 billion of assets under management.
“We are delighted to be completing this landmark acquisition shortly after establishing the JV platform. The portfolio gives us immediate scale in the tightly held Singapore market, cementing our position as one of the top industrial asset owners in Singapore and reiterating our conviction in the life sciences and R&D sector,” said Takashi Murata, managing director, co-head of Asia real estate and head of Japan at Warburg Pincus.
Justin Gabbani, CEO investment management, Lendlease, said, “This strategic acquisition underscores our commitment to the rapidly expanding life sciences and R&D real estate market in Asia Pacific”.
“The platform is well-positioned to capture opportunities in the sector. We look forward to building momentum and further scaling the business, as well as driving performance for our investment partners.”
Lendlease had been under heavy pressure from shareholders for some time to revamp its business and, in late May announced a $4.5 billion divestment program of its troubled overseas operations. That coincided with the $147 million sale of its Asia life sciences real estate interests into a joint venture with Warburg Pincus.
Lendlease announced swung to a $1.5 billion loss in FY24, as it navigates the business shake-up.
