Blackstone Pays USD 8 Billion for BioMed Realty Trust

The Blackstone Group (London, United Kingdom) has agreed to acquire real estate investment trust (REIT) BioMed Realty Trust (San Diego, CA, USA), for about USD 8 billion, including debt.

BioMed Realty Trust provides office and research space to biotechnology and pharmaceutical companies, scientific research institutions, government agencies, and other entities in the life science industry. The company has more than 1.67 km² of rental space, offering a wide range of options, from office space to small lab space to state of the art custom-built life science properties. The company posted revenue of USD 674.6 million in 2014.

The Blackstone Group is a global leader in real estate investing, with approximately USD 92 billion in investor capital under management. Blackstone's real estate portfolio includes hotel, office, retail, industrial, and residential properties in the United States, Europe, Asia, and Latin America. Major holdings including Hilton Worldwide, pan-European logistics company Logicor, SCP Chinese shopping malls, and prime office and residential buildings in the world's major cities.

“BioMed owns an exceptional collection of office buildings catering to life science tenants in gateway markets including Boston-Cambridge, San Francisco, San Diego, and Seattle,” said Nadeem Meghji, co-head of US real estate acquisitions for the Blackstone Group. “We believe in the long-term fundamentals of this sector, particularly in locations with top-tier educational and research institutions.”

“Demand for high-quality, institutional real estate to support the unprecedented growth of the life science industry is at historic levels as demand is outpacing supply in all of our core innovation districts,” said Alan D. Gold, chairman, president and CEO of BioMed Realty Trust. “However, we believe that the public markets are not adequately valuing our assets and proven business model. Entering into this transaction with Blackstone fulfills our board of directors’ mission to maximize stockholder value.”

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The Blackstone Group
BioMed Realty Trust