Kilroy Realty Corp. has completed its purchase of a life science development site in South San Francisco for $308M. The site, now called Kilroy Oyster Point, was previously owned by Oyster Point Development, backed by China’s Greenland USA. The site is fully entitled for 2.5M SF of development.

Kilroy plans to develop a laboratory and office complex in several stages that will span 11 buildings across a 40-acre waterfront site. Oyster Point Development’s original $2B plan also called for 1,200 units of housing, but the plan was put on hold in March. Kilroy has not indicated if it will include housing.

The Chinese government has been cracking down on overseas investments, and many Chinese companies, including Anbang, have been under pressure to sell their large investments.

The site is at Oyster Point and Marina boulevards on the northern corridor of South San Francisco. The site is adjacent to Kilroy’s existing three-building Oyster Point Tech Center.

Currently, about 2M SF of demand exists in the Bay Area’s life science market and Class-A office lab vacancy is less than 3% in South San Francisco. Other developers building new lab space in South San Francisco include BioMed Realty, Alexandria Real Estate Equities, Phase 3 Real Estate Partners and HCP. The region’s current biotech market is over 12M SF across 500 acres.

“Kilroy Oyster Point is a significant opportunity to expand our West Coast life science platform in a prudent and disciplined manner,” Kilroy Realty Corp. CEO and Chairman John Kilroy said in a statement. “It offers all the advantages we look for in new development — a strong location in a world-class market serving a dynamic industry with all the services and amenities required to attract today’s young, urban innovative workforce.”

The site is near public transportation options, including BART and Caltrain, with access to several residential communities, including hundreds of new housing units in the works in downtown South San Francisco.