Blackstone Announces $14.6 Billion Recapitalization of BioMed Realty
October 15 2020 - 6:40PM
Business Wire
Blackstone (NYSE: BX) today announced that Blackstone Real
Estate Partners VIII L.P. and co-investors have agreed to sell
BioMed Realty for $14.6 billion to a group led by existing BioMed
investors. This is part of a new long-term, perpetual capital,
core+ return strategy managed by Blackstone. BioMed is the largest
private owner of life science office buildings in the United States
with an 11.3 million square foot portfolio concentrated in the
leading innovation markets including Boston/Cambridge, San
Francisco, San Diego, Seattle and Cambridge U.K. In connection with
the recapitalization, existing BioMed investors were offered the
option to exit for cash or reinvest their proceeds from the sale.
The investment will generate $6.5 billion of cumulative profits for
BREP VIII and BioMed co-investors.
BREP VIII, an opportunistic Real Estate investment fund, and
co-investors acquired BioMed in January 2016. Since that time,
Blackstone has transformed the company into a premier life science
office company by concentrating the portfolio in core life science
markets with strong growth potential, building a best-in-class
management team, developing assets for investment grade tenants and
stabilizing operations by increasing occupancy.
Kathleen McCarthy, Global Co-Head of Blackstone Real Estate,
said, “Life science is one of Blackstone’s highest conviction
themes, and we have made a number of important investments in this
space across the firm. In real estate, many of our investors are
eager to maintain or increase their exposure to life science
office, and this recapitalization enables them to do that with an
extraordinarily high-quality company as well as a trusted partner
in Blackstone.”
Nadeem Meghji, Head of Real Estate Americas for Blackstone,
said, “We have worked hand in hand with the world-class BioMed team
to build the largest private life science office portfolio in the
U.S. located in the best markets. During our ownership, we have
completed and commenced $3.3 billion of best-in-class new
developments and continue to cultivate an attractive future
development pipeline. We are big believers in the life science
sector broadly and BioMed in particular, and we look forward to
continuing to grow the business over the long-term.”
Tim Schoen, President and CEO of BioMed Realty, said, “Together
with Blackstone, we have created a coveted portfolio in one of the
most sought-after real estate asset classes. Our sector continues
to prove its resiliency, and now is the logical time to seek
long-term capital. This partnership structure and Blackstone’s
ongoing support enable us to advance our mission, which is to make
concentrated investments in core markets to support the growth of
the life science and technology industries.”
Morgan Stanley & Co. LLC has provided a fairness opinion to
BREP VIII with respect to the consideration to be received in
connection with the announced transaction. To confirm this
transaction represents the best available outcome for the existing
investors, Blackstone is commencing a “go-shop” process on behalf
of BioMed’s current investors, which will be led by Morgan Stanley
& Co. LLC who will solicit superior proposals.
The recapitalization is expected to close within five business
days of the conclusion of the “go-shop” process.
Morgan Stanley & Co. LLC is serving as financial advisor to
BREP VIII, and Eastdil Secured is serving as financial advisor to
the purchasers. Simpson Thacher & Bartlett LLP is serving as
legal advisor to Blackstone.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has $167
billion of investor capital under management. Blackstone is one of
the largest property owners in the world, owning and operating
assets across every major geography and sector, including
logistics, multifamily and single-family housing, office,
hospitality and retail. Our opportunistic funds seek to acquire
undermanaged, well-located assets across the world. Blackstone’s
Core+ strategy invests in substantially stabilized real estate
globally through regional open-ended funds focused on high-quality
assets and Blackstone Real Estate Income Trust, Inc. (BREIT), a
non-listed REIT that invests in U.S. income-generating assets.
Blackstone Real Estate also operates one of the leading global real
estate debt businesses, providing comprehensive financing solutions
across the capital structure and risk spectrum, including
management of Blackstone Mortgage Trust (NYSE: BXMT).
About BioMed Realty
BioMed Realty, a Blackstone portfolio company, is the largest
private provider of real estate solutions to the life science and
technology industries. BioMed owns and operates high quality life
science real estate comprising 11.3 million square feet
concentrated in the leading innovation markets throughout the
United States and United Kingdom, including Boston/Cambridge, San
Francisco, San Diego, Seattle and Cambridge U.K. In addition,
BioMed maintains a premier development platform with 2.3 million
square feet of Class A properties in active construction to meet
the growing demand of the life science industry.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201015006110/en/
Ilana Mouritzen Ilana.Mouritzen@Blackstone.com Tel: (212)
583-5776
Blackstone (NYSE:BX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Blackstone (NYSE:BX)
Historical Stock Chart
From Apr 2023 to Apr 2024