Blackstone Real Estate Announces Acquisition of Premier Lab Office Portfolio from Brookfield Fund
December 14 2020 - 8:38AM
Business Wire
Blackstone (NYSE: BX) today announced that Blackstone Property
Partners Life Sciences (“BPPLS”) will acquire a best‐in‐class, 2.3
million square foot portfolio of lab office buildings from a
Brookfield Asset Management real estate fund for $3.45 billion.
BPPLS is Blackstone Real Estate’s long-term, perpetual capital,
core+ return life sciences strategy that owns BioMed Realty,
Blackstone’s life science real estate portfolio company. The
transaction is expected to close in the first quarter of 2021
subject to customary closing conditions.
Approximately 90% of the portfolio being acquired is
concentrated in Cambridge, Massachusetts. Following the completion
of the transaction, Blackstone will become the largest life science
office owner in Cambridge, and BioMed Realty, which will have an
enterprise value of approximately $20 billion, will have two-thirds
of its platform concentrated in the Boston/Cambridge market.
Cambridge is one of the fastest growing lab office submarkets in
the country due to its adjacency to world-leading academic
institutions and the largest cluster of pharmaceutical companies in
the U.S. The Cambridge portfolio is located in East Cambridge,
directly adjacent to the Massachusetts Institute of Technology, and
is leased to blue-chip tenants.
“This transaction illustrates Blackstone’s continued conviction
in the life sciences space both broadly, and within real estate,
investing in best-in-class assets located adjacent to top-tier
research and education institutions,” said Nadeem Meghji, Head of
Real Estate Americas. “We look forward to continuing to grow the
platform with the help of BioMed Realty, our world-class life
science office platform, with the goal of delivering value to our
long-term investors.”
This acquisition follows a number of other significant
Blackstone investments in therapies and technologies in the life
sciences space beyond the firm’s investments in real estate. The
firm launched Blackstone Life Sciences in 2018 to invest directly
in promising medicines and technologies. In July, Blackstone raised
the largest life sciences private fund to date, and the firm has
also made major investments in Cryoport, a leading provider of
temperature-controlled logistics solutions to the life sciences
industry, and Precision Medicine Group, a leading next-generation
provider of drug development and commercialization services.
Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and
Wells Fargo Securities LLC are serving as financial advisors to
Blackstone, and Simpson Thacher & Bartlett LLP is serving as
legal advisor. Eastdil Secured is serving as lead financial advisor
to Brookfield, and Skadden, Arps, Slate, Meagher & Flom LLP is
serving as legal advisor. Citigroup Global Markets Inc. also
provided financial advisory services to Brookfield in connection
with the transaction.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has $174
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).
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may cause actual results to differ significantly from those
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expectations, but they are not guarantees of future performance.
Furthermore, Blackstone disclaims any obligation to publicly update
or revise any forward-looking statement to reflect changes in
underlying assumptions or factors, of new information, data or
methods, future events or other changes. For a further discussion
of these and other factors that could cause Blackstone’s future
results to differ materially from any forward-looking statements,
see the section entitled “Risk Factors” in Blackstone’s Annual
Report on Form 10-K filed with the Securities and Exchange
Commission, or SEC, and other risks described in documents
subsequently filed by Blackstone from time to time with the
SEC.
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Ilana Mouritzen Ilana.Mouritzen@Blackstone.com Tel: (212)
583-5776
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