Friday, October 16th, 2020
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Blackstone Real Estate Partners VIII and co-investors have agreed to sell BioMed Realty for $14.6 billion to a group led by existing BioMed investors.
BioMed is the largest private owner of life science office buildings in the US with a 11.3 million square foot portfolio concentrated in Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge UK.. In connection with the recapitalization, existing BioMed investors were offered the option to exit for cash or reinvest their proceeds from the sale. The investment will generate $6.5 billion of cumulative profits for BREP VIII and BioMed co-investors.
BREP VIII, an opportunistic Real Estate investment fund, and co-investors acquired BioMed in January 2016.
The recapitalization is part of a new long-term, perpetual capital, core+ return strategy managed by Blackstone.
“Life science is one of Blackstone’s highest conviction themes, and we have made a number of important investments in this space across the firm,” Kathleen
The Ventas Life Science and Healthcare Real Estate Fund has acquired a trophy life science portfolio in the South San Francisco life science cluster for $1 billion. The seller is Bain Capital Real Estate.
Ventas is the sponsor and general partner of the fund, which is a perpetual life vehicle focused on investments in core and core plus life science, medical office and senior housing real estate in North America.
The purchase price for the portfolio represents approximately a 5% capitalization rate on forward cash net operating income. The average escalator for the portfolio exceeds 3%. The seller is an affiliate of the partnership from which Ventas acquired 1030 Massachusetts Ave., in Cambridge, Mass., last year.
The portfolio, positioned at the entrance to the South San Francisco life science cluster, consists of a campus of three newly developed or renovated buildings totaling nearly 800,000 square feet. It is 96% leased
As offices sit empty, demand for life science space is flourishing.
But that isn’t anything new.
From 2009 to the end of 2019, lab space in the United States grew from 17 million to 29 million square feet, according to Bloomberg.
But building that space from scratch is expensive, according to Jennifer Luoni, director of operations at Dacon, a Boston-area design build firm. Luoni helped design ABI-LAB 2, a four-story life sciences incubator, a building in Natick, Mass., that contains 22 small labs, for a client a year and a half before COVID hit.
“It’s a big capital investment to build a lab and get the equipment that you need,” Luoni tells GlobeSt.com. “And you’re not sure if what you’re trying to research or build is going to go anywhere. Sometimes trials can take many years to create.”
With companies offering to rent to the lab supplies that life
This week’s most popular homes on realtor.com® are an intriguing blend of country and city.
Atop the list of most-clicked homes sits a scrumptious legacy estate in northern New Jersey for $39 million. After a pitch-perfect remodel, the estate known as Darlington charmed home shoppers from coast to coast.… Read More