ROCKVILLE, MD—San Diego-based BioMed RealtyTrust has sold its biological manufacturing facility herefor $322.5 million in gross proceeds. The REIT isregistering a gain of $136 million from the sale of the289,900-square foot property, which traded for $1,112 per squarefoot. GI Partners, a private equity firm, is thebuyer.

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Shareholders are receiving a special dividend from the sale of 3cents per share of common stock, or $61 million of theproceeds.

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The REIT plans to use the remaining proceeds to pay down thebalance of its unsecured revolving credit facility with an eye tofurther investment in laboratory and life sciences officefacilities in such areas as Boston/Cambridge, the San Francisco BayArea and San Diego.

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The building was a value add play for the REIT, which acquiredit in 2006 "at an attractive cost basis," according to CEO AlanGold. It went on to collect "significant annual cash flows," hesaid.

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The manufacturing facility is fully leased until June 2026 toHuman Genome Sciences, a wholly-owned subsidiary ofGlaxoSmithKline. BioMed acquired the building as a sale-leasebacktransaction, which also included the 635,000 square foot ShadyGrove Road property and an adjoining land parcel that had thecapacity for an estimated 500,000 square feet of futuredevelopment.

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BioMed Realty is retaining ownership of the Shady Grove Roadproperty, which is also fully leased to HGSI through June 2026, aswell as the adjacent land parcel for future development.

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The deal also reduces HGSI's tenant concentration withinBioMed's portfolio to 4.3% of annualized base rents on a pro-formabasis from more than 20% before the sale.

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