BioMed Realty to Merge With Wexford Science & Technology
Mar 27th 2013 8:32PM
Updated Mar 27th 2013 8:36PM
Citing the ability to enter into the university market, leading life-sciences industry real estate provider BioMed Realty agreed to merge with privately held real estate investment and development company Wexford Science & Technology for approximately $640 million.
Approximately $551 million of the purchase price is for Wexford's operating portfolio, which includes some 1.6 million square feet of newly developed, state-of-the-art research facilities in high-barrier sites located near leading academic, medical, and research institution campuses. The other $89 million will be for projects currently under development.
BioMed Realty Chairman and CEO Alan D. Gold said: "The combination of BioMed Realty and Wexford Science & Technology further expands our footprint into the university markets with high-quality assets, credit tenants, and long-term leases. In addition, it accelerates our growth as the leading provider of real estate to the life science industry."
Wexford has approximately 935,000 square feet of rentable space currently under construction that's approximately 68% pre-leased. It also owns parking garages in Philadelphia and Baltimore and boasts additional land parcels that can support an estimated 300,000 square feet in additional development.
The transaction will give BioMed annualized base rents of approximately $497 million, which represents the monthly contractual rent as of Dec. 31, while reducing its top 10 tenant concentration from 50% to 45% of annualized base rents.
BioMed Realty owns properties comprising approximately 13.2 million rentable square feet predominantly located in Boston, San Francisco, Maryland, San Diego, New York, New Jersey, Pennsylvania, and Seattle.
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