Acquires Fully-Leased Portfolio for $298 Million
SAN DIEGO, Oct 26, 2010 /PRNewswire via COMTEX/ --
BioMed Realty Trust, Inc. (NYSE: BMR) announced that it has completed the previously announced acquisition of the Science Center at Oyster Point and the Gateway Business Park, two adjacent life science campuses in the South San Francisco life science market, comprised of a total of approximately 489,000 square feet of laboratory, office and industrial space. The properties were purchased for approximately $298 million.
The Science Center at Oyster Point is comprised of two newly constructed, state-of-the-art research facilities with an aggregate of approximately 205,000 square feet of space, which are 100% leased on a long-term basis to Elan Corporation. The Gateway Business Park, a research and development park with an aggregate of approximately 284,000 square feet, is fully leased to Elan, FedEx Corporation and Genentech, Inc., a member of the Roche Group. As part of the acquisition, the company assumed a development agreement with the city of South San Francisco that would permit redevelopment of the campus to a total of approximately 1.23 million square feet of rentable space, representing a net increase of approximately 946,000 square feet.
Kent Griffin, President and Chief Operating Officer of BioMed, remarked, "We are very excited about this significant enhancement to BioMed's footprint in the South San Francisco submarket and our overall platform in the San Francisco Bay area. These properties exemplify BioMed's successful business model of investing in the highest quality, well-located, state-of-the-art research facilities within core U.S. life science markets. In addition, this acquisition further expands, strengthens and diversifies our tenant roster with three prominent public companies. We look forward to supporting the important scientific innovation and commercialization efforts in South San Francisco for many years to come."
Anne Hoffman to Join BioMed as Senior Vice President, Development
Concurrently with the closing of the South San Francisco portfolio acquisition, BioMed announced that Anne Hoffman has joined the company as Senior Vice President, Development. Prior to the acquisition, Ms. Hoffman served as President of Chamberlin Associates, from which the South San Francisco properties were acquired. Since 2005, Ms. Hoffman had been responsible for Chamberlin's acquisition, finance, development, operational and disposition activities.
"Anne and her team built a formidable life science portfolio in the San Francisco Bay area, and we are delighted and honored to welcome Anne and several of her colleagues to Team BioMed," said Mr. Griffin. "Their extensive industry knowledge, outstanding reputation and depth of relationships throughout the Bay area will further enhance BioMed's position as the leading provider of real estate to life science industry."
Commenting on the transition, Ms. Hoffman said, "The sale of the Science Center at Oyster Point and the Gateway Business Park to BioMed is a real positive for all parties to the transaction. With BioMed, we found what we believe to be the best long-term stewards for these exceptional assets, with the proven skills to operate and manage newly developed world-class research facilities and a fully integrated platform to realize their future development potential. I am pleased to join Alan Gold, Kent Griffin and the entire BioMed team to pursue a wide range of value creation opportunities in the San Francisco Bay area and beyond. BioMed has a strong track record of building quality relationships, developing exceptional environments for its tenants, and contributing to the community."
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 82 properties, representing 144 buildings with approximately 12.1 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.