HCP's new assets will include high-profile corporate campuses like Genentech and Amgen in San Francisco, which will be folded into a new HCP life sciences group that will include the Long Beach company's existing life sciences holdings. The deal will include the assumption or refinancing of approximately $1.2 billion of Slough USA's outstanding debt.
Slough USA's portfolio is concentrated in the San Francisco Bay Area and San Diego County. In addition to the existing portfolio, the company has a development pipeline in those two markets that consists of approximately 500,000 sf that is nearly all preleased to investment grade tenants and approximately 3.3 million sf of space that will be developed in phases based on market demand.
HCP says that Slough USA's management team is expected to continue to manage the portfolio after the acquisition. Slough's Marshall D. Lees will assume responsibilities for management of HCP's existing life science portfolio as executive vice president of the newly constituted life science group of HCP.
Health Care Property Investors has arranged a financing commitment for a $3-billion bridge loan for the deal, which is expected to close in the third quarter, subject to the approval of the shareholders of Slough's parent company and other customary conditions. HCP's financial adviser on the deal was Cohen & Steers Capital Advisors, which provided a fairness opinion in connection with the transaction.
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