The deal is for $23.75 per share, a 10% premium over BioMed's closing price on Wednesday.
The deal is expected to close in the first quarter of next year.
BioMed owns properties in the drug development and life science industries.
"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 BioMed CEO Alan Gold. "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."
Separately, TheStreet Ratings team rates BIOMED REALTY TRUST INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate BIOMED REALTY TRUST INC (BMR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 26.5% when compared to the same quarter one year prior, rising from $18.64 million to $23.58 million.
- BMR, with its decline in revenue, underperformed when compared the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for BIOMED REALTY TRUST INC is currently extremely low, coming in at 4.11%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 14.91% significantly trails the industry average.
- Net operating cash flow has decreased to $55.49 million or 23.60% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: BMR