Legal & General Capital is forming a partnership with U.S.-based real estate developer Ancora to create a new $4 billion fund to invest in life-science and technology real estate development projects.
The alternative money manager unit of U.K. insurer Legal & General Group is investing $500 million in seed money to form Ancora L&G LLC, which will be a 50-50 partnership between Legal & General Capital and Ancora.
"While the U.S. is the world's largest commercial real estate market, the lab real estate market in particular is one of the smallest sectors among other commercial U.S. asset classes," said Nigel Wilson, chief executive of Legal & General Group, in a joint news release from the firms. "This lack of scale creates high barriers to entry for investors and has made it particularly challenging for tenants to grow due to scarcity of supply. LGC's ability to access this opportunity via Ancora will set it apart from other sources of institutional capital seeking to participate in the market."
According to the news release, Legal & General Capital is seeking co-investment partners to support future growth of the fund. A spokesman said in an email the fund is currently exploring acquisition and development opportunities in U.S. locations with local connections to major universities.
Josh Parker, CEO of Ancora, and John Philipchuck, its chief investment officer, will have the same titles with Ancora L&G, the news release said.