Published On: Mon, Oct 19th, 2020

Blackstone Makes $14.6 Billion Deal For BioMed Realty

And Blackstone has also spent $275 million for Roku offices.

Blackstone Real Estate Partners has agreed to sell BioMed Realty for $14.6 billion to a group led by existing BioMed investors. Blackstone has also paid $275 million (roughly $770 per square foot) for two buildings in San Jose California used by Roku, Bloomberg reported.

Roku, a service which allows people to turn any television into a smart TV by accessing streaming services through Wi-Fi, has nine more years on its lease at the property where it holds 730,000 square feet of office space.

Netflix, ABC, Disney and CBS/Viacom are also tenants at the Coleman Highline development.

And as if all of hat is not enough, Blackstone Group Inc. is nearing a deal to buy an Indian developer Prestige Estates Projects commercial properties for about $2 billion, according to a report in The Economic Times.

Prestige Estates rent-yielding assets include offices and operating malls. But according to the report, no details of the sale have been confirmed and the deal could still be dropped.

As for the sale of BioMed Realty, Blackstone stated that the deal was part of its new long-term, perpetual capital, core+ return strategy managed.

BioMed is the largest private owner of life science office buildings in the United States with an 11.3 million square foot portfolio concentrated in the leading innovation markets including Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge U.K. In connection with the recapitalization, existing BioMed investors were offered the option to exit for cash or reinvest their proceeds from the sale.

Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, said, “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. 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 with an extraordinarily high-quality company as well as a trusted partner in Blackstone.”

The recapitalization is expected to close within five business days of the conclusion of a “go-shop” process.

Morgan Stanley & Co. LLC 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.

About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $167 billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, multifamily and single-family housing, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ strategy invests in substantially stabilized real estate globally through regional open-ended funds focused on high-quality assets and Blackstone Real Estate Income Trust, Inc. (BREIT), a non-listed REIT that invests in U.S. income-generating assets. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).

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