SINGAPORE (EDGEPROP) - Australian property giant Lendlease and Dutch pension fund manager PGGM have partnered to create the Lendlease Innovation Limited Partnership, a $1 billion venture that will invest in real estate assets in the innovation and life science space with a focus on Australia, Japan and Singapore.

PGGM will hold an 85% interest in the partnership, while Lendlease will hold a 15% stake and will provide services to the partnership, including development management. In a joint press statement, both companies say the partnership will leverage Lendlease’s expertise to create “hubs of economic activity where innovation, entrepreneurship, creativity and placemaking intersect.”

The first asset under the new partnership is a freehold commercial property located in Yokohama, Japan. The 12-storey building is situated in close proximity to Minato Mirai, an urban area in central Yokohama and R&D hub for Japanese brands like Sony, Shiseido and Hyundai.

Justin Gabbani, Lendlease’s CEO, Asia, notes a growing demand for real estate hubs and development centres focused on research, innovation and advancing next-gen technology. “The establishment of an innovation-focused investment partnership together with our long-term partner PGGM is a vote of confidence in Lendlease’s position as a global real estate and investment leader,” he says.

Meanwhile, PGGM says the innovation and life science sectors in Asia Pacific will see a boost, underpinned by an increased focus on health combined with substantial investments in technology. Its partnership with Lendlease — which has been developing over 25 years — gives PGGM a chance to build a portfolio of assets in the hubs where innovation, talent and knowledge come together, says Jikke de Wit and Ping Ip from PGGM Private Real Estate.