Blackstone Real Estate Partners VIII and co-investors have agreed to sell BioMed Realty for $14.6 billion to a group led by existing BioMed investors.
BioMed is the largest private owner of life science office buildings in the US with a 11.3 million square foot portfolio concentrated in Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge UK.. 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.
The recapitalization is part of a new long-term, perpetual capital, core+ return strategy managed by Blackstone.
“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,” Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, said in prepared remarks.
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, she added.
Go Shop Period
Morgan Stanley has provided a fairness opinion to BREP VIII on the transaction. Blackstone is commencing a go-shop process on behalf of BioMed’s current investors, which will be led by Morgan Stanley, 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 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.