ROCKVILLE, MD—San Diego-based BioMed Realty Trust has sold its biological manufacturing facility here for $322.5 million in gross proceeds. The REIT is registering a gain of $136 million from the sale of the 289,900-square foot property, which traded for $1,112 per square foot. GI Partners, a private equity firm, is the buyer.
Shareholders are receiving a special dividend from the sale of 3 cents per share of common stock, or $61 million of the proceeds.
The REIT plans to use the remaining proceeds to pay down the balance of its unsecured revolving credit facility with an eye to further investment in laboratory and life sciences office facilities in such areas as Boston/Cambridge, the San Francisco Bay Area and San Diego.
The building was a value add play for the REIT, which acquired it in 2006 "at an attractive cost basis," according to CEO Alan Gold. It went on to collect "significant annual cash flows," he said.
The manufacturing facility is fully leased until June 2026 to Human Genome Sciences, a wholly-owned subsidiary of GlaxoSmithKline. BioMed acquired the building as a sale-leaseback transaction, which also included the 635,000 square foot Shady Grove Road property and an adjoining land parcel that had the capacity for an estimated 500,000 square feet of future development.
BioMed Realty is retaining ownership of the Shady Grove Road property, which is also fully leased to HGSI through June 2026, as well as the adjacent land parcel for future development.
The deal also reduces HGSI's tenant concentration within BioMed's portfolio to 4.3% of annualized base rents on a pro-forma basis from more than 20% before the sale.
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