Jones Lang LaSalle
BioMed Realty, Human Genome In $425 Mln Sale/leaseback Deal - Update
Wednesday, May 03, 2006; Posted: 01:51 AM
(RTTNews) - Tuesday evening, BioMed Realty Trust, Inc. (BMR) said it agreed to acquire the Maryland-based manufacturing, headquarters and laboratory facilities of Human Genome Sciences (HGSI) for about $425 million. The purchase price excludes estimated closing costs. HGS would lease back the buildings from BioMed.
The acquired portfolio based in Maryland spans about 925,000 rentable square feet of existing laboratory, office and manufacturing space, as well as an undeveloped 500,000 rentable square feet of additional land. BioMed expects the initial capitalization rate for the acquired portfolio to exceed 9%.
HGS would enter into 20-year leases for the two facilities, with options to renew the lease and the right to repurchase the properties under certain circumstances.
The transactions are expected to add about 380 million in net additional cash available for HGS operations. This amount includes $220 million in new cash and $160 million in cash that would be freed up by eliminating the cash restriction associated with the previous lease for the headquarters facility.
The deal is slated for close in the second quarter, subject to customary closing conditions.
BioMed also said it closed the buy of its eleventh property in the Boston market for about $13.2 million.
BMR closed Tuesday's regular trade at $26.85, down 35 cents, while HGSI closed down 3 cents at $10.96. In the extended session, HGSI was seen trading 25 cents or 2.28% higher.
Copyright(c) 2006 RealTimeTraders.com, Inc. All Rights Reserved
BioMed Realty, Human Genome In $425 Mln Sale/leaseback Deal - Update
Wednesday, May 03, 2006; Posted: 01:51 AM
(RTTNews) - Tuesday evening, BioMed Realty Trust, Inc. (BMR) said it agreed to acquire the Maryland-based manufacturing, headquarters and laboratory facilities of Human Genome Sciences (HGSI) for about $425 million. The purchase price excludes estimated closing costs. HGS would lease back the buildings from BioMed.
The acquired portfolio based in Maryland spans about 925,000 rentable square feet of existing laboratory, office and manufacturing space, as well as an undeveloped 500,000 rentable square feet of additional land. BioMed expects the initial capitalization rate for the acquired portfolio to exceed 9%.
HGS would enter into 20-year leases for the two facilities, with options to renew the lease and the right to repurchase the properties under certain circumstances.
The transactions are expected to add about 380 million in net additional cash available for HGS operations. This amount includes $220 million in new cash and $160 million in cash that would be freed up by eliminating the cash restriction associated with the previous lease for the headquarters facility.
The deal is slated for close in the second quarter, subject to customary closing conditions.
BioMed also said it closed the buy of its eleventh property in the Boston market for about $13.2 million.
BMR closed Tuesday's regular trade at $26.85, down 35 cents, while HGSI closed down 3 cents at $10.96. In the extended session, HGSI was seen trading 25 cents or 2.28% higher.
Copyright(c) 2006 RealTimeTraders.com, Inc. All Rights Reserved
posted by Jones Lang LaSalle NJ News Blog at 10:37 AM
<< Home