CenterSquare Investment Management is among the new and existing investors who participated in a $1.7 billion equity raise by life sciences developer IQHQ Inc. It is the second round of financing for IQHQ, which completed a $770 million capital raise earlier this year.
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IQHQ, which has offices in San Diego and Boston, said it is well positioned to continue expanding its development pipeline that already includes about 4.4 million square feet of life science projects in Boston, San Francisco and San Diego. Formed in February, the company formerly known as Creative Science Properties immediately began making strategic acquisitions of major development sites and assets in major life science markets. Its first purchase was a 285,000-square-foot lab and office building in Boston’s Fenway neighborhood acquired for $270 million in February.
In May, IQHQ acquired the 200,000-square-foot Innovation Park in Andover, Mass., in a $35.9 million deal. Two months later, IQHQ added Alewife Park, a 290,000-square-foot life sciences campus in Cambridge, Mass., in a $125 million sale-leaseback transaction with GCP Applied Technologies. Then in September, IQHQ broke ground on the first phase of the $1.5 billion San Diego Research and Development District, the first urban life sciences-centric waterfront campus in the city. The RaDD is being built on land at the Manchester Pacific Gateway mixed-use development site purchased from Manchester Financial Group. Phase One is expected to be completed by summer 2023.
CenterSquare chips in
Citing the San Diego development and Alewife Park acquisition, CenterSquare officials said its $158 million investment will improve IQHQ’s ability to execute on future transactions and provide an underpinning for the existing portfolio and balance sheet. Todd Briddell, CEO & CIO of CenterSquare, a Plymouth Meeting, Pa.,-based global real assets manager, said in prepared remarks the IQHQ management team has already executed on a highly scalable vision to deliver state-of-the-art office, lab and R&D space to premier tenants. Briddell said CenterSquare has confidence in both IQHQ and the strength of the life sciences sector.
Steve Rosetta, IQHQ CEO, said in a prepared statement CenterSquare’s experience in both public and private real estate investment will be a long-term asset to the IQHQ team. While the company did not publicly identify any other investors, the San Diego Union-Tribune reported Madison International Realty is also an investor in IQHQ. Rosetta said in a separate statement that the completion of what he termed a significant capital raise validates IQHQ’s solid strategy, exceptional team and success in identifying and securing premier life science projects and developments in top markets.
Jamie Graff, managing director, co-head of real estate at Raymond James, said in prepared remarks interest in the offering was exceptionally strong due to the momentum IQHQ has achieved since forming. He added the life sciences sector has remained steady and is projected to have continued growth.