SAN DIEGO, Feb. 20 /PRNewswire-FirstCall/ -- BioMed Realty Trust, Inc.
(NYSE: BMR) today announced that its joint venture with PREI(R) (Prudential
Real Estate Investors) entered into a secured construction loan with Wachovia
Bank, National Association and certain other lenders to provide borrowings of
up to approximately $245 million in connection with the construction of 650
East Kendall Street, a roughly 300,000 square foot life sciences building
located in Cambridge, Massachusetts.
Proceeds from the construction loan will be used in part to repay a
portion of the joint venture's existing $550 million secured acquisition and
interim loan facility from KeyBank National Association and certain other
lenders and to fund the balance of the anticipated cost to complete
construction of the project.
In addition to entering into the new construction loan, the joint venture
also extended the term of the existing secured acquisition and interim loan
facility by one year to April 3, 2009, with no additional changes to the
pricing or terms of the facility.
"The construction loan and extension of the existing loan are important
milestones that further enhance the financial flexibility of the joint
venture. We are extremely pleased to obtain financing for this construction
project prior to pre-leasing given the challenges in the broader financial
market. Furthermore, we appreciate the continued strong support of our lending
partners," said Kent Griffin, Chief Financial Officer of BioMed Realty Trust.
Roger Pratt, PREI Senior Portfolio Manager, commented, "We are very
pleased to have fully financed the construction costs for the joint venture's
650 East Kendall Street property. The success of this financing is a strong
testimony to the quality of the project and the sound sponsorship by BioMed
The construction loan initially bears interest at a floating rate equal to
reserve adjusted LIBOR plus a spread of 150 basis points. The construction
loan has a maturity date of August 13, 2010 and is secured by the 650 East
Kendall Street property and related collateral.
About BioMed Realty Trust
BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused
on Providing Real Estate to the Life Science Industry(R). The company's
tenants primarily include biotechnology and pharmaceutical companies,
scientific research institutions, government agencies and other entities
involved in the life science industry. BioMed Realty Trust owns or has
interests in 68 properties, representing 104 buildings with approximately
8.5 million rentable square feet, as well as approximately 1.9 million square
feet of development in progress. These properties are located predominantly in
the major U.S. life science markets of Boston, San Diego, San Francisco,
Seattle, Maryland, Pennsylvania and New York/New Jersey, which have
well-established reputations as centers for scientific research. Additional
information is available at http://www.biomedrealty.com.
PREI is the real estate investment management business of Prudential
Financial, Inc. (NYSE: PRU). PREI's specialized operating units offer a broad
range of investment opportunities and investment management services in the
United States, Europe, Asia, and Latin America. The company's fund management
operations, located in Parsippany, New Jersey; Atlanta, Georgia; Munich;
London; Mexico City; and Singapore, are supported by a network of local
offices throughout the world. As of September 30, 2007, PREI managed
$40.7 billion of gross assets ($29.4 billion net) on behalf of more than
400 clients and is ranked among the largest real estate investment managers.
For more information, visit http://www.prei.com.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 based on current
expectations, forecasts and assumptions that involve risks and uncertainties
that could cause actual outcomes and results to differ materially. These risks
and uncertainties include, without limitation: general risks affecting the
real estate industry (including, without limitation, the inability to enter
into or renew leases, dependence on tenants' financial condition, and
competition from other developers, owners and operators of real estate);
adverse economic or real estate developments in the life science industry or
the company's target markets; risks associated with the availability and terms
of financing and the use of debt to fund acquisitions and developments;
failure to manage effectively the company's growth and expansion into new
markets, or to complete or integrate acquisitions and developments
successfully; risks and uncertainties affecting property development and
construction; risks associated with downturns in the national and local
economies, increases in interest rates, and volatility in the securities
markets; potential liability for uninsured losses and environmental
contamination; risks associated with the company's potential failure to
qualify as a REIT under the Internal Revenue Code of 1986, as amended, and
possible adverse changes in tax and environmental laws; and risks associated
with the company's dependence on key personnel whose continued service is not
guaranteed. For a further list and description of such risks and
uncertainties, see the reports filed by the company with the Securities and
Exchange Commission, including the company's most recent annual report on Form
10-K and quarterly reports on Form 10-Q. The company disclaims any intention
or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE BioMed Realty Trust, Inc.
CONTACT: Kent Griffin, Chief Financial Officer of BioMed Realty Trust,
Web site: http://www.biomedrealty.com