Harrison Street taps Korean LPs for $1.5 bn life science property fund

The Korean Teachers' Credit Union has committed $100 million to Harrison Street Real Estate Capital's new flagship fund that is aiming to raise $1.5 billion to invest in life science, healthcare service and senior housing facilities, according to a local newspaper report.

A number of South Korean financial services companies look set to make a similar amount of commitment to the US investment firm's eighth flagship fund, the Maeil Business Newspaper reported last week.

Earlier this month, Harrison Street announced the acquisition of a portfolio of 24 senior housing communities in California and Nevada operated by Oakmont Management Group, for approximately $1.2 billion.

Since its inception in 2005, Chicago-based Harrison Street has invested across senior housing, student housing, healthcare delivery, life science and storage real estate, as well as social and utility infrastructure. With an exclusive focus on alternative real estate, the private equity firm has around $33 billion in assets under management.

Logistics centers and life science real estate, including medical labs and healthcare-related facilities, are among the few sectors performing stronger in the prolonged pandemic era. They are enjoying solid rental demand and low vacancies compared to office buildings.

In particular, life science and healthcare service facilities are emerging as a niche market for institutional investors.

Earlier this year, the National Pension Service had committed $500 million to Blackstone's new life science real estate fund that is expected to raise over $12 billion. It marked the South Korean pension fund's first investment in a vehicle targeting life science properties, with the US investment firm bolstering its life science-related portfolio. 

Yeonhee Kim edited this article.