Tishman Speyer, Korea’s NPS Launch $1.5B Venture

Rob Speyer, president & CEO, Tishman Speyer. Image courtesy of Tishman Speyer

The National Pension Service of Korea and Tishman Speyer are expanding their longtime relationship with the launch of a $1.5 billion investment platform aimed at high-demand asset classes, including life science properties and affordable housing, and emerging sectors driven by innovation and technology.

The separately managed account (SMA) will make investments across major markets in the U.S. Drawing on NPS and Tishman Speyer’s global expertise and experiences as early adopters of new technologies, the venture will dedicate substantial capital to making investments in promising proptech companies, particularly in early growth stages. The two firms say they will target investments in disruptive technologies transforming real estate.

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Rob Speyer, Tishman Speyer president & CEO, said in prepared remarks the most intriguing part of the new investment platform will be the ability to move quickly based on disruptive technologies and market shifts. Speyer noted NPS and Tishman Speyer have been strategic partners and co-investors for more than a decade and he was excited to build on the successful relationship.

The NPS-Tishman Speyer platform will also invest capital into life sciences real estate acquisitions and developments being made by Breakthrough Properties, a joint venture between Tishman Speyer and Bellco Capital.

Tishman Speyer and life sciences investment firm Bellco Capital formed Breakthrough Properties in July 2019 to acquire, develop and operate life science properties in leading tech markets around the globe. The first investment was the acquisition of a development site in Boston’s Seaport District. The 105, located at 105 W. First St., will have 263,500 square feet when completed in 2022 and has been fully leased by CRISPR Therapeutics. In November 2020, Breakthrough Properties said it had raised more than $1 billion in capital for its Breakthrough Life Science Property Fund and in co-investments.

NPS will become the anchor investor in Tishman Speyer’s affordable housing platform that was established last year for the ground-up construction, redevelopment and acquisition of quality housing affordable to low- and middle-income residents.

The NPS-Tishman Speyer investment platform will also be used to create a new mezzanine lending arm within Tishman Speyer that will originate and acquire high-yield loans in various real estate sectors at properties in gateway cities and growing innovation markets.

Earlier deals

The new NPS-Tishman Speyer investment follows other recent co-investment ventures both firms have made with other partners. In September, Tishman Speyer and Hana Financial Group agreed to form a strategic partnership to make investments in a variety of asset types across the U.S., Europe and Asia. The joint venture intends to deploy as much as $500 million of equity capital into real estate opportunities over the next two years. The strategic partnership will prioritize asset classes and properties that promote innovation and ESG principles.

In December 2020, NPS and Hines formed a $1.5 billion equity joint venture to invest in developments in urban infill locations around the globe. The companies started off by committing 20 percent of the joint venture to projects in North America and Asia. The plan is to target best-in-class developments in the best locations and will include mixed-use, residential, office and logistics assets.