San Diego Business Journal

BioMed Realty Announces $640M Portfolio Purchase Deal

Wednesday, March 27, 2013

San Diego-based BioMed Realty Trust Inc. has entered into an agreement to merge with Wexford Science & Technology LLC of Baltimore, in an acquisition deal valued at approximately $640 million.

A statement from the two real estate investment firms said the agreement calls for BioMed to purchase the operating portfolio of Wexford Science for approximately $551 million. The life-sciences real estate investment trust has agreed to pay an additional $89 million for projects currently under development by Wexford Science.

The agreement calls for Wexford Science & Technology to operate as a wholly owned subsidiary of BioMed Realty Trust. The deal is expected to close in the third quarter, subject to approval of lenders, ground lessors and other third parties, the statement said.

Wexford Science & Technology is currently a subsidiary of investment firm Wexford Equities LLC. The planned BioMed acquisition includes a nationwide Wexford Science operating portfolio of approximately 1.6 million square feet, approximately 86 percent leased.

The properties being acquired include several in use by noted academic and medical institutions, including University of Pennsylvania Health System, Washington University in St. Louis, and Wake Forest University.

BioMed also announced that it has commenced a public offering of 15 million shares of its common stock. The company expects to use net proceeds to fund a portion of the purchase price for the Wexford Science portfolio, to repay a portion of its outstanding debt under its unsecured line of credit, and for working capital purposes.

The company has its headquarters in Rancho Bernardo and trades under the symbol BMR on the New York Stock Exchange.

— SDBJ Staff Report