SAN DIEGO, Dec. 13, 2011 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has entered into a definitive agreement to acquire Prudential Real Estate Investors' (PREI) 80% interest in the Rogers Street properties. BioMed previously acquired a 20% interest in the properties in April 2007 concurrent with the joint venture entered into between BioMed and PREI. The Rogers Street properties are located in the heart of the Cambridge life science community and include two laboratory and office facilities at 301 Binney Street and 320 Bent Street, as well as the Kendall Crossing Apartments and the Binney Street Garage.
The 301 Binney Street property is a state-of-the-art research facility comprising approximately 417,300 rentable square feet of office and laboratory space. The building is leased to a premier tenant roster which includes Ironwood Pharmaceuticals, Inc., the Broad Institute of Harvard and MIT and Living Proof, Inc. The property is now approximately 74% leased, including a new 21,717 square foot lease expansion with Ironwood signed in October 2011, bringing Ironwood's total leased space at 301 Binney Street to approximately 210,300 square feet. Adjacent to 301 Binney Street, the 320 Bent Street research facility comprises approximately 184,400 rentable square feet of laboratory and office space which is approximately 79% leased to Merck & Co., Inc. Collectively, the 301 Binney Street and 320 Bent Street properties are now approximately 76% leased.
The Kendall Crossing Apartments is a seven-story building comprising 37 apartment units, which are 100% leased, as well as 4,645 square feet of retail space on the first floor which is also 100% leased. The Binney Street Garage is a parking structure comprising approximately 500 spaces for use by tenants of 301 Binney Street, 320 Bent Street and the Kendall Crossing Apartments.
Alan D. Gold, BioMed's Chairman and Chief Executive Officer, commented, "We are very excited to take full ownership of the Rogers Street properties in the center of the most vibrant life science market in the world today. This acquisition of PREI's interests in these properties represents another step forward in our trusted, mutually beneficial relationship over the past four and a half years. Our combined life science property expertise and understanding of the specialized requirements of our tenants have created unique environments at 301 Binney Street and 320 Bent Street that cultivate life science discoveries and create growing value for our shareholders. We look forward to continuing to operate and manage the properties for our valued existing tenants and attracting more world-class life science organizations to Cambridge and Rogers Street."
Excluding closing costs, the aggregate amount expected to be paid by BioMed to or on behalf of PREI to fully acquire PREI's interest in the Rogers Street properties is approximately $308 million. BioMed will also contribute approximately $35 million to repay its portion of the secured acquisition and interim loan allocated to the Rogers Street properties. BioMed will use cash on hand and draw on its unsecured line of credit to fund the $343 million total cash required for the transaction. Following the transaction, the Rogers Street properties will be owned 100% by BioMed and will be fully unencumbered.
BioMed will continue to own a 20% interest in a joint venture with PREI that owns the 650 Kendall Street property and the Kendall Square Garage.
BioMed estimates the aggregate cash and GAAP 2012 net operating income for the Rogers Street properties to be approximately $23.1 million and $16.9 million, respectively, not including the impact of any additional lease up of the properties. The difference between cash and GAAP net operating income largely reflects the impact of the ground lease agreement for the Rogers Street properties which expires in 2062.
The acquisition is subject to the satisfaction of customary closing conditions, and BioMed can offer no assurances that the acquisition of PREI's interest in the Rogers Street properties will close on the terms described herein, or at all.
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®. 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 properties comprising approximately 12.4 million rentable square feet. The company's properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, Maryland, San Diego, New York/New Jersey, Pennsylvania and Seattle, 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: the possibility that the acquisition of PREI's interest in the Rogers Street properties may not occur on the terms described herein, or at all; failure to manage effectively the company's growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully, including the proposed acquisition of PREI's interest in the Rogers Street properties; the company's ability to meet projected yields on acquired properties, including PREI's interest in the Rogers Street properties; 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; reductions in asset valuations and related impairment charges; 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; 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: Rick Howe, Director, Corporate Communications, +1-858.207.5859, firstname.lastname@example.org