SAN DIEGO, Sept 08, 2010 /PRNewswire via COMTEX/ --
BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has entered into definitive agreements to acquire five properties, comprised of 14 life science buildings with approximately 405,000 square feet of laboratory and office space, in San Diego's primary life science submarkets of University Towne Centre, Torrey Pines and Sorrento Valley. The properties are approximately 92% leased on a weighted average basis to a high-quality, diversified tenant roster, which includes Amylin Pharmaceuticals, Inc., Bristol-Myers Squibb Company, the University of California at San Diego, eBioscience, Inc. and Halozyme Therapeutics, Inc. These acquisitions would increase BioMed's San Diego portfolio to approximately 1.8 million rentable square feet.
The properties to be acquired include 4570 Executive Drive in University Towne Centre; 10240 Science Center Drive in Torrey Pines; and 11388 Sorrento Valley Road, 11404 and 11408 Sorrento Valley Road and a nine-building business park located between Roselle Street and Flintkote Avenue in Sorrento Valley. The aggregate purchase price for the five properties is approximately $132.9 million, excluding closing costs, with an estimated aggregate cash-basis 2011 net operating income of approximately $10.2 million. These acquisitions are subject to the satisfaction of customary closing conditions, and BioMed can offer no assurances that any of the acquisitions will close on the terms described herein, or at all.
"We are excited about these investment opportunities, which serve as prime examples of our consistently disciplined focus and our ability to execute on our strategy of acquiring high-quality properties, well-located within the core life science markets," commented Alan D. Gold, BioMed's Chairman and Chief Executive Officer. "The tenant rosters at these properties include top caliber life science organizations from each of our primary tenant classifications: research institutions, A-rated public companies, larger, established public companies, mid-stage life science companies and early stage life science organizations. We look forward to the opportunity through these acquisitions to extend existing tenant relationships and build new ones with some of the premier life science participants in the San Diego market."
Three of the five properties are to be acquired free of any outstanding mortgage obligations, while two of the properties are subject to existing mortgages to be assumed by BioMed at closing. The mortgages to be assumed include a $13.3 million mortgage maturing in November, 2011 that bears interest at 7.4% per annum and a $4.4 million mortgage maturing in August, 2013 that bears interest at 5.4% per annum. The company anticipates funding the balance of the purchase price, approximately $115.2 million, with proceeds from the company's unsecured line of credit.
A portion of the vacancy in the properties is subject to a rent guarantee from the sellers for a period of two years, which has the effect of increasing the portfolio's weighted average leased percentage to approximately 99% and increases the estimated aggregate cash-basis net operating income in 2011 to approximately $11.6 million.
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 owns or has interests in 75 properties, representing 122 buildings with approximately 11.2 million rentable square feet. The company's 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 www.biomedrealty.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, the use of debt to fund acquisitions and developments, and the ability to refinance indebtedness as it comes due; failure to maintain the company's investment grade credit ratings with the ratings agencies; failure to manage effectively the company's growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; reductions in asset valuations and related impairment charges; 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.