This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
SAN DIEGO and
March 26, 2013 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR) announced today that it has entered into a definitive agreement to merge with Wexford Science & Technology, LLC, a subsidiary of Wexford Equities, LLC, furthering BioMed Realty's position as the leading provider of real estate to the life science industry. Wexford Science & Technology is a private real estate investment and development company that owns and develops institutional quality life science real estate for academic and medical research organizations, and that boasts well-regarded skills for urban development and redevelopment of life science real estate. The aggregate consideration for Wexford Science & Technology is approximately
$640 million, excluding transaction costs and subject to adjustment based on working capital levels and construction and development costs incurred prior to closing. Wexford Science & Technology will operate as a wholly owned subsidiary of BioMed Realty.
"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," said BioMed Realty's Chairman and Chief Executive Officer,
Alan D. Gold. "In addition, it accelerates our growth as the leading provider of real estate to the life science industry."
$551 million of the initial consideration is for Wexford Science & Technology's operating portfolio which includes approximately 1.6 million rentable square feet of newly developed, state-of-the-art research facilities in high-barrier sites located on or immediately adjacent to leading academic, medical system and research institution campuses and in close proximity to the local market demand drivers. The operating portfolio, all of which was developed and delivered between 2005 and 2011, is approximately 86% leased, with 66% of annualized base rents generated from academic and medical institutions and A-rated life science companies having an average remaining lease term of 13 years. Top tenants by annualized base rents include, among others: the
University of Pennsylvania Health System;
Washington University in
Wake Forest University; the
University of Maryland; the
University of Miami;
Old Dominion University; the
Illinois Institute of Technology and
Penn State University.
$89 million of the initial consideration is for projects currently under development. Wexford Science & Technology has approximately 935,000 square feet of rentable space currently under construction in three projects that are, collectively, approximately 68% pre-leased, anchored by the
University of Pennsylvania Health System,
Wake Forest University and
Washington University in
St. Louis. Wexford Science & Technology also owns parking garages in
Baltimore with 419 and 638 stalls, respectively, that support Wexford Science & Technology's life science developments, and owns additional land parcels that can support an estimated 300,000 square feet in additional development potential.
Kent Griffin, President and Chief Operating Officer of BioMed Realty, commented, "Beyond the opportunity to add the high-quality assets of the operating portfolio and the attractive development pipeline, we are particularly excited about the strategic opportunity to further penetrate the university segment with the addition of the team from Wexford Science & Technology. This group, which includes seasoned life science real estate experts with a successful track record of serving the specialized needs of universities, university-related institutions and healthcare systems, will continue to operate under the leadership and direction of
James Berens, providing additional depth of skills and breadth of capabilities to our operating platform."
Commenting on the merger, Mr. Berens said, "BioMed Realty is the ideal partner for Wexford Science & Technology because of their leadership position in the life science industry, and our shared technical expertise and understanding of and approach to life science real estate. In addition, BioMed Realty brings scale, financial strength, industry reach and a breadth of relationships that enhance our value proposition to our clients and our opportunity set within the academic and medical research communities. Equally important is the cultural fit of the two companies, where commitments to long-term relationships and supporting transformational research and groundbreaking science are values woven into the fabric of both companies."