BioMed Realty enters definitive agreement to acquire Granta Park

BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has entered into a definitive agreement to acquire Granta Park, comprising eleven laboratory and office buildings and a total of approximately 472,200 square feet of space, as well as approximately 138,400 square feet of development and expansion rights, in Cambridge, United Kingdom. The purchase price for the property is 126.8 million pounds, or approximately $196.0 million, excluding transaction costs.

Granta Park is fully leased to a diversified roster of eleven tenants, including global pharmaceutical and biotechnology organizations, with an average remaining lease term of more than eight years.  With this new investment, the company will expand current tenant relationships with MedImmune (and parent company AstraZeneca), which will become the company's eleventh largest tenant, and Pfizer.  In addition, this premier life science research park is home to new tenants Gilead Sciences, Pharmaceutical Product Development, UCB, and Vernalis.  The company estimates the annual cash net operating income for the Granta Park investment to be approximately 10.2 million pounds ($15.8 million).

The Cambridge, United Kingdom research community is anchored by the University of Cambridge, established in 1209, with 20% of the world's Nobel Prize recipients in medicine and chemistry and the recipient of over 280 million pounds in research grants in 2011.  This Cambridge science cluster supports over 1,000 science and technology companies, the Wellcome Trust, the largest medical research charitable organization in the world, Cavendish Laboratory, and the Babraham Institute.

Commenting on the new investment, Alan D. Gold, Chairman and Chief Executive Officer, said, "We are extremely pleased and excited to announce our expansion of BioMed Realty's best-in-class property portfolio with this investment in Cambridge, the premier life science cluster in the United Kingdom and arguably all of Europe.  The Cambridge market enjoys all of the critical elements that mark a strong, self-sustaining life science cluster:  proximity to premier academic and research institutions, a highly skilled work force, access to financial partners, and a healthy portfolio of strong commercial life science organizations."

Kent Griffin, President of BioMed Realty, remarked, "This investment demonstrates the robust nature of our fully-integrated operating platform and our ability to leverage BioMed Realty's particular skill and expertise in life science real estate for the benefit of our shareholders. Granta Park is an excellent investment opportunity with very attractive return potential consistent with our core business strategy – focused on highest-quality real estate in core life science clusters and in close proximity to primary demand drivers, including leading research institutions.  This recently developed, amenity-rich, eleven-building campus has attracted world-renowned life science research organizations and includes additional development potential, enabling us to support their continued growth and expansion going forward."

The acquisition is subject to the satisfaction of customary closing conditions, and BioMed Realty can offer no assurances that the acquisition will close on the terms described herein, or at all.  The company anticipates incurring transaction costs of approximately $12 million, including transfer taxes, brokerage commissions and legal, tax and advisory fees.  Latham & Watkins and Ernst & Young provided legal and tax advisory services, respectively.  These transaction expenses will be reflected as transaction costs in the second quarter of 2012. 

The company expects to provide revised 2012 earnings and FFO guidance in its second quarter 2012 earnings press release that incorporates the estimated impact of this transaction.  U.S. dollar values are based on the exchange rate in effect as of June 8, 2012. 

SOURCE BioMed Realty Trust, Inc.