CalPERS Adds $673M Bet With DivcoWest Life Sciences Venture

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The California Public Employees Retirement System (CalPERS), one of the largest pension funds in the world, is raising its bet on life sciences real estate in its partnership with DivcoWest.

At its latest board meeting, the retirement fund approved a $673 million allocation for its DW Life Science Partners vehicle with the San Francisco-based investment firm, according to The Registry. This comes after an initial $500 million commitment last year.

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The groups did not return requests for comment.

Recent marketwide headwinds — including rising interest rates and a receding tech sector — have hit the life sciences sector as well. But demand has remained steady for life sciences and medical office space, and activity in hub markets continues to grow, according to a midyear report from Newmark, with unbroken leasing and development momentum.

DivcoWest, a subsidiary of DivCore Capital, has acquired approximately 59 million square feet of commercial space, including office, research and development, lab, industrial, retail and multifamily real estate.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.