IBM Signs Major Sublease Deal at Cambridge Complex

CAMBRIDGE, MA—IBM has signed a sublease deal with ARIAD Pharmaceuticals, Inc. to occupy approximately 160,000 square feet of office space at 75 Binney St. building here, which is being developed by Alexandria Real Estate Equities, Inc.

ARIAD Pharmaceuticals revealed the transaction in an Aug. 21st 8K filing with the Securities and Exchange Commission. The sublease amounts to almost half of the space the global oncology pharmaceutical firm had leased at the 75-125 Binney St. complex. The pharmaceutical firm had leased 386,000 square feet of space at the property.

According to the SEC filing, the sublease is for a 10-year term from the original rent start date, which ARIAD expects will be in the third quarter of 2016. The value of the lease over the 10-year term is estimated at $114.5 million. The sublease also includes an option to extend for the remainder of the term of ARIAD'S direct lease with Alexandria Real Estate.

ARIAD did not divulge any further information on the sublease transaction. The firm in its 8K filing states that it intends to file further information regarding the sublease as an exhibit to its quarterly 10Q report for the period ending Sept. 30, 2015. Officials with IBM could not be reached at press time on what operations will be housed at the 75 Binney St. building and when it expects to begin operations there.

A spokesman for Alexandria Equities tells Globest.com that the base of the 75-125 Binney St. complex was completed in March of this year and ARIAD is expected to take occupancy of its space at the property in early 2016.

Alexandria and ARIAD announced in January 2013 that the pharmaceutical firm had signed a 15-year lease for approximately 244,000 rentable square feet of office space at the 75/125 Binney St. complex. On Sept. 16, 2013, the two firms reported that ARIAD executed a lease amendment increasing its leased space at 75-125 Binney St. by approximately 142,000 rentable square feet. The lease amendment had raised ARIAD's total leased space to approximately 386,000 rentable square feet or 99.5%, of the project. The remaining approximately 2,000 rentable square feet is slated for retail use.

On Aug. 5, ARIAD Pharmaceuticals reported a net loss for the quarter ended June 30, 2015 of $63.2 million, or $0.33 per share, compared to a net loss of $56.9 million, or $0.30 per share, for the same period in 2014. The company's Iclusig kinase inhibitor is used in the treatment of certain forms of leukemia. Net product revenues from sales in the US and Europe of Iclusig were $27.8 million for the quarter ended June 30, 2015, an increase of 134% as compared to the second quarter of 2014 and 16% higher in comparison with the first quarter of 2015.