Blackstone Group bought a portfolio of 93 life-science buildings to a separate fund the asset supervisor controls for $14.6 billion, in a transaction that represents a $6.5 billion acquire in worth from when it acquired the properties in 2016.
The New York-based business actual property behemoth stated that slightly than money out of the BioMed Realty Belief holdings, which is the second-largest proprietor of life science buildings within the U.S., traders opted to remain in, the Wall Avenue Journal reported.
Blackstone’s revenue within the sale is the third-largest it has achieved in any fund it manages. Previous to the transaction, which is the primary of its variety Blackstone has carried out, the agency thought-about taking BioMed public or promoting the corporate.
BioMed’s properties are concentrated within the San Francisco bay space, San Diego, Boston, Seattle and New York, in addition to Cambridge in the UK, in accordance with its web site. Funding financial institution Morgan Stanley can even search bids to find out if a better supply exists.
The demand for life-science buildings has intensified, particularly as new remedies are developed by startups as an alternative of at giant pharmaceutical corporations. The prevailing demand for area intensified with the onset of Covid-19, as researchers work to develop a vaccine.
Kathleen McCarthy, Blackstone’s world co-head of actual property, stated that the BioMed life sciences portfolio has not suffered the drops in lease collections which have plagued different sectors. The portfolio’s occupancy stands at 97 %, McCarthy instructed the Journal, and about half of its tenants are engaged on Covid-19 testing or vaccines.
Though the sector does face dangers of excessive upkeep prices for labs, and there is usually a vital lag time between analysis and promoting remedies to the general public, different traders are bullish on life sciences, too.
In San Francisco, Ventas, a publicly-traded healthcare REIT based in Chicago, acquired a life-sciences campus from Bain Capital Actual Property for $1.02 billion. Bain acquired the Genesis South San Francisco campus in 2015.
“Sturdy and rising capital flows into the life science sector are accelerating innovation and discovery,” stated Ventas CEO Debra Cafaro.
[WSJ] — Georgia Kromrei