Ventas Inc. recently revealed four new developments totaling approximately $0.8 billion in its university-based Research & Innovation business, all in partnership with Wexford Science & Technology LLC, the leading developer of university-focused real estate solutions. These investments are part of the near-term $1.5 billion R&I pipeline (of expected new projects previously announced by Ventas.
These developments with leading institutions include: 1) creation of a research, academic medicine and innovation hub anchored by a new relationship with University of Pittsburgh to house ground-breaking immunotherapy research in collaboration with the University of Pittsburgh Medical Center (“UPMC”) and co-located with UPMC’s Shadyside Hospital; 2) a new development that expands the flourishing Philadelphia uCity Square Knowledge Community associated with the University of Pennsylvania; 3) also in uCity Square, a state of the art College of Nursing and Health Professionals for Drexel University; and 4) expansion of the vibrant Cortex Innovation Community associated with Washington University in St. Louis. The projects are 40 percent pre-leased and are expected to generate over a 7 percent cash yield, and over an 8 percent GAAP yield, upon stabilization.
Ventas has now announced projects totaling $0.9 billion of its Pipeline. With the previously announced development at Arizona State University, these projects:
add 1.5 million square feet to Ventas’s R&I portfolio;
are 40 percent pre-leased; and
are expected to deliver an unlevered cash yield at stabilization of over 7 percent and an over 8 percent GAAP yield.
“We are excited to announce these outstanding new projects with existing and new university relationships, which are strong proof points of our exciting growth opportunity in the Research & Innovation segment,” said John Cobb, Ventas Executive Vice President and Chief Investment Officer. “With $0.9 billion of our $1.5 billion development pipeline announced, we look forward to bringing these projects to successful completion while we also work to make the balance of our near term pipeline a reality.”
“Ventas and Wexford are proud to partner with leading research universities, health systems, academic medical centers, life science companies and entrepreneurs in the creation of Knowledge Communities and innovation hubs. We are committed to collaborating with and supporting these world-class research institutions, pioneers in biomedical research, academic medicine leaders and innovators as they develop life-changing therapies, conduct groundbreaking scientific research, and train clinicians to improve the lives of millions of patients as the population rapidly ages,” noted Debra A. Cafaro, Ventas Chairman and Chief Executive Officer.
Including the new developments, Ventas has relationships with over 15 leading research universities in its R&I portfolio, who collectively rank in the top 95 percent of all NIH funding and conduct over 10 percent of all university research and development in the nation. Pro forma for announced developments, Ventas’s R&I portfolio will total nearly eight million square feet and is expected to generate approximately $230 million in annual net operating income upon stabilization of announced new developments.