Breakthrough Properties Secures $430 Million for Growth Initiatives in Life Science Real Estate

Breakthrough Properties, a strategic collaboration between Tishman Speyer and Bellco Capital, has recently announced the initial closing of its second investment fund, the Breakthrough Properties Growth Portfolio II, which successfully raised $430 million. This funding will focus on investing in a diversified array of Class A life science real estate within leading innovation hubs across the United States and Europe.

The latest funding round is a significant milestone as it builds upon the success of the inaugural $3 billion life science investment fund that was closed in 2022. The new fund aims to leverage both direct capital and co-investment commitments to enhance Breakthrough’s portfolio further, which is already expansive, covering approximately six million square feet of market-leading life science projects.

A Proven Investment Strategy

Breakthrough Properties stands out as the only dedicated life science real estate manager actively involved in the U.S., U.K., and continental Europe. Its strategy capitalizes on key projects such as Torrey Heights in San Diego and One Helix in Amsterdam, which have drawn significant interest from some of the world's foremost life science organizations. Impressively, around 60% of Breakthrough’s portfolio is currently leased to notable investment-grade companies, including Pfizer, AstraZeneca, and Eli Lilly, showcasing the firm's attractiveness to leading players in the industry.

The recent fund's closing brought in contributions from a mix of institutional and private investors, including global asset management firms and family offices. Dan Belldegrun, CEO of Breakthrough Properties, expressed enthusiasm regarding the timing of this fund, noting that current market dynamics provide unique opportunities to acquire high-quality assets at favorable pricing. “We believe these are precisely the ingredients for a fantastic investment vintage,” he stated, underlining the confidence the firm has in the life science sector.

Focus on Class A Assets

The investment strategy postured by Breakthrough emphasizes acquiring Class A assets in prime locations, ensuring attractive entry points and fostering improvements in market fundamentals. This approach is supported by Tishman Speyer and Bellco Capital's established networks, which have resulted in 70% of Breakthrough’s leasing activities being secured through direct relationships with life science users. This user-centric strategy allows Breakthrough to gather invaluable insights into where the life sciences industry is moving, fostering innovation within its developments.

Sustainability and Community Building

A notable aspect of Breakthrough’s operations is its commitment to sustainability. All U.S. developments target LEED Gold certification while projects in the U.K. and EU aim for BREEAM Outstanding. The Global Real Estate Sustainability Benchmark ranked Breakthrough first among its peers in the Technology/Science sector for its commitment to high-quality, sustainable research campuses.

Further enhancing its offerings, Breakthrough Properties also aims to create and nurture full-service ecosystems that equip life science companies with access to industry pioneers and mentorship through its Scientific Advisory Board and a robust venture capital network.

Future Outlook

As Breakthrough embarks on this next chapter, additional closings for the Growth Portfolio II fund are set to occur in 2026, with expectations to continue attracting investment across various life science asset profiles and markets. Rob Speyer, CEO of Tishman Speyer and Co-Chairman of Breakthrough, highlighted that the firm's first fund served as a proof of concept, allowing the team to aim for scalable growth with this second fund.

Breakthrough Properties, formed in 2019, combines two influential forces in life science real estate development. It continues to seek out the best opportunities to support groundbreaking scientific advancements through its thoughtfully designed properties in leading urban technology centers, reaffirming its mission to foster innovation and scientific breakthroughs.

As the demand for state-of-the-art life science facilities surges, Breakthrough Properties is poised to seize the moment, driven by a commitment to quality, sustainability, and an unwavering focus on the future of science and innovation.