- Acquires Cambridge Property for $13.2 Million -
SAN DIEGO, May 2 /PRNewswire-FirstCall/ -- BioMed Realty Trust, Inc.
(NYSE: BMR) today announced that it has signed a definitive purchase and sale
agreement with Human Genome Sciences, Inc. (Nasdaq: HGSI) to acquire Human
Genome Sciences' large-scale manufacturing and headquarters office and
laboratory facilities located in Rockville, Maryland. The portfolio includes
a total of approximately 925,000 rentable square feet of existing laboratory,
office and manufacturing space, with the headquarters facility consisting of
three recently constructed buildings and a parking structure, as well as
undeveloped land that management estimates can support over 500,000 rentable
square feet of additional laboratory and office space. The total purchase
price is approximately $425 million, excluding estimated closing costs.
BioMed expects the initial capitalization rate for the acquired portfolio to
be in excess of nine percent. The acquisition is anticipated to close in the
second quarter of 2006, and is subject to customary closing conditions.
Human Genome Sciences, a public biopharmaceutical company with a pipeline
of novel protein and antibody drugs directed toward large markets that have
significant unmet medical need, will lease the buildings pursuant to 20-year
triple-net leases. The leases provide for a security deposit equal to one
year's rent, and provide HGSI with the right to extend each lease for two
10-year terms and to repurchase the properties under certain circumstances.
"This transaction with Human Genome Sciences provides us with another
tremendous opportunity, as we increase our presence in one of our core target
markets. These premier buildings will be fully leased to a well-respected
company that we believe has considerable growth potential and a promising
product pipeline, adding to our solid tenant base. The land component affords
us additional development capabilities in this highly desirable and rapidly
growing location. With the closing of this $425 million acquisition, we will
have, for the second consecutive year, substantially exceeded our stated
investment targets," said Alan D. Gold, President and Chief Executive Officer
of BioMed Realty Trust.
"We are pleased to have partnered with BioMed Realty Trust on these
transactions. This agreement is the latest in a series of steps that Human
Genome Sciences has taken to strengthen our balance sheet and provide
increased flexibility in the management of our cash resources. We expect that
both of our lead products -- Albuferon(TM) for chronic hepatitis C, and
LymphoStat-B(TM) for lupus -- will enter Phase 3 clinical development by the
end of this year, and the additional cash will support their rapid
development," said H. Thomas Watkins, President and Chief Executive Officer of
Human Genome Sciences.
The Human Genome Sciences portfolio is located in Maryland's I-270
corridor just north of Washington, D.C. This core life science market is in
close proximity to government health agencies, such as the National Institutes
of Health, U.S. Food and Drug Administration and Department of Health and
Human Services, and the campuses of Johns Hopkins University and the
University of Maryland. Furthermore, the area has a diversified economic base
and is home to many notable companies, including MedImmune, Celera Genomics,
Lockheed Martin, IBM and Marriott International, and non-profit entities, such
as The Institute for Genomic Research.
BioMed also announced that it has closed on the acquisition of its
eleventh property in the Boston market for approximately $13.2 million. The
47,912 square-foot office/laboratory facility, located at 58 Charles Street in
Cambridge, is currently 94% leased to five tenants.
"The Charles Street acquisition reinforces our dominant presence in the
important Cambridge market and complements our other exceptional assets in the
area. The property is located in close proximity to MIT's campus, and will
enable us to provide space for life science companies of varying sizes and
real estate needs," said Mr. Gold.
Management intends to provide updated guidance for the full year ending
December 31, 2006 funds from operations (FFO) and earnings per diluted share
when it reports first quarter 2006 results, scheduled for release after the
market closes on Wednesday, May 3, 2006.
About Human Genome Sciences
Human Genome Sciences is a company with the mission to discover, develop,
manufacture and market innovative drugs that serve patients with unmet medical
needs, with a primary focus on protein and antibody drugs. For more
information about Human Genome Sciences, please visit the company's web site
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(TM). The company's
tenants primarily include biotechnology and pharmaceutical companies,
scientific research institutions, government agencies and other entities
involved in the life science industry, and its properties and primary
acquisition targets are generally located in markets with well established
reputations as centers for scientific research, including Boston, San Diego,
San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey.
BioMed's real estate portfolio consists of 43 properties, representing 64
buildings with approximately 4.8 million rentable square feet in each of the
major life science markets in the United States. 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: risks that the Human
Genome Sciences portfolio acquisition will not be completed on the terms
described in this release, or at all; 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 successfully;
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 Boston or California regions; 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. 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
05/02/2006 17:00 EDT http://www.prnewswire.com