Blackstone to Acquire BioMed Realty Trust for $8B
SAN DIEGO — BioMed Realty Trust Inc. (NYSE: BMR) has entered into a definitive agreement with affiliates of Blackstone Real Estate Partners VIII, under which Blackstone will acquire all outstanding shares of common stock of BioMed Realty for $23.75 per share in an all-cash transaction valued at $8 billion. BioMed Realty Trust’s stock price closed Wednesday, Oct. 7 at $21.58 per share.
BioMed Realty’s board of directors has unanimously approved the transaction.
San Diego-based BioMed Realty Trust owns or has interests in properties comprising approximately 18.8 million rentable square feet. The majority of the company’s holdings are located in Boston, San Francisco, San Diego, New York and Maryland.
“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,” says Alan Gold, chairman, president and CEO of BioMed Realty. “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.”
The deal, which is expected to close in the first quarter of 2016, is contingent upon the approval of BioMed Realty’s stockholders, who will vote on the transaction at a special meeting on a date to be announced.
Morgan Stanley & Co. LLC is acting as lead financial advisor to BioMed Realty, with Raymond James & Associates Inc. also acting as a financial advisor in connection with this transaction. Latham & Watkins LLP is acting as BioMed Realty’s legal advisor.
Eastdil Secured Group of Wells Fargo Securities LLC, Citigroup Global Markets Inc., JP Morgan Securities LLC and Bank of America Merrill Lynch are acting as Blackstone’s financial advisors in connection with the transaction. Simpson Thacher & Bartlett LLP is acting as legal advisor to Blackstone.
“We are excited to acquire this best-in-class company which owns an exceptional collection of office buildings catering to life science tenants in gateway markets including Boston-Cambridge, San Francisco, San Diego and Seattle,” says Nadeem Meghji, co-head of U.S. real estate acquisitions for Blackstone. “We believe in the long-term fundamentals of this sector, particularly in locations with top-tier educational and research institutions.”
BioMed Realty’s portfolio includes One Research Way in Princeton, N.J.; Sidney Research Campus in Cambridge, Mass.; Wake Forest Innovation Quarter in Winston-Salem, N.C.; University of Maryland BioPark in Baltimore; and University Science Center East and West in San Diego.
Blackstone’s real estate business was founded in 1991 and has approximately $92 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the U.S., Europe, Asia and Latin America.
— John Nelson