The state’s Bioscience Connecticut initiative — aimed at building the industry’s stature in the state — is getting a $203 million boost in private financing for construction at the University of Connecticut Health Center in Farmington.
TIAA-CREF and the health center today announced the 25-year loan, which officials say is the only private financing component of the $864 million bioscience initiative. The funds provided by the loan will be used for construction and equipment at the health center’s 307,000-square-foot ambulatory care building scheduled to be completed in the fall of 2014 and open to the public the following January.
A key component to the bioscience initiative is the Jackson Laboratory for Genomic Medicine, which is nearby to the health center. Gov. Dannel P. Malloy pushed the state to lend Jackson $291 million to entice them to build a genetics research facility in Farmington.
“This public-private partnership between the UConn Health Center and TIAA-CREF is a win-win for Connecticut,” Malloy said, in a release. “A state-of-the-art outpatient care facility will allow the health center to better recruit top talent and address the medical needs of the community.”
The new, ambulatory care building will bring outpatients services, now scattered in multiple buildings, under one roof, also fostering collaboration among the center’s staff.
The $203 million loan is structured as a credit tenant loan. The loans allow the property owner to finance construction and other expenses and uses a percentage of future rent to pay off the loans.
TIAA-CREF, a national financial services firm with $523 billion of assets under management, also provides retirement services in the academic, research, medical and cultural fields. TIAA-CREF has about $4 billion invested in universities and health-care institutions, a slice of its real estate investments.
In Connecticut, TIAA-CREF manages $10 billion in assets, including $1 billion in state of Connecticut retirement assets. In addition, it manages $2 billion for the CHET College Savings Plan account holders.
TIAA-CREF has $5.5 billion in real estate and other investments in Connecticut.
“With this investment, we are truly advancing the long-term interests of our clients and the state of Connecticut while fulfilling our own mission to support the financial strength of nonprofit institutions and employees,” Robert Leary, president of TIAA-CREF asset management, said.
Read more about the initiative in this story by my colleague Bill Weir.