A Medical Device Daily

BioMed Realty Trust (San Diego) reported the formation of a joint venture (j-v) with Prudential Real Estate Investors (PREI; Parsippany, New Jersey).

With its formation, the j-v completed the previously disclosed acquisition of a portfolio of assets from affiliates of Lyme Timber Company (Hanover, New Hampshire) (Medical Device Daily, Jan. 31, 2007).

The portfolio includes about 600,000 square feet of life science space recently completed or under construction at the Rogers Street project and land that can support about 266,000 square feet of life science laboratory and office space at Kendall Square in Cambridge, Massachusetts. The j-v acquired the portfolio for a total price of $507 million.

With the acquisition, the j-v obtained a $550 million secured acquisition and interim loan facility from KeyBank National Association, and initially borrowed about $427 million of the purchase price at closing. The remainder of the purchase price was funded 80% on behalf of institutional investors in a value-added commingled fund advised by PREI, and 20% by BioMed.

"This transaction highlights the continued maturation of the life science real estate industry and attractiveness of this property type to the sophisticated institutional real estate investor community," said Alan Gold, president/CEO of BioMed Realty Trust. "We believe that the life science segment has tremendous opportunities for growth and that BioMed has the right team to identify and execute on these opportunities," said Roger Pratt, PREI senior portfolio manager.

BioMed will be responsible for day-to-day operations and development of the portfolio, and will receive market rate fees for property management and development services. Raymond James & Associates acted as financial advisor to BioMed on the j-v formation.