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SOURCE BioMed Realty Trust, Inc.
Concurrently Agrees to Terminate Lease with Elan Corporation and Acquire Foster City Campus from Life Technologies
SAN DIEGO, March 20, 2013 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR) announced today the signing of two new leases for 15 years with Life Technologies Corporation (NASDAQ: LIFE) at its Science Center at Oyster Point property in the heart of the South San Francisco, California life science submarket. Life Technologies, a global biotechnology company, will fully occupy 200 and 180 Oyster Point Boulevard, comprising approximately 204,900 square feet of laboratory and office space.
Concurrently, the company also announced that it has reached agreement with Elan Corporation, the current tenant at The Science Center at Oyster Point, on an early lease termination at The Science Center at Oyster Point which will be effective simultaneously with the Life Technologies leases. Pursuant to the agreement, Elan will pay BioMed Realty an early lease termination fee of $46.5 million.
Commenting on the new relationship with Life Technologies, BioMed Realty's Chairman and Chief Executive Officer, Alan D. Gold, remarked, "We are delighted to have the opportunity to serve the real estate needs of Life Technologies, a pioneer and worldwide leader in biotechnology, in the Bay Area. Their Polymerase Chain Reaction (PCR) technology was foundational to mapping the human genome and their recent introduction of the Ion Torrent semiconductor sequencing technology promises to revolutionize genetic sequencing for scientists involved in every stage of discovery research. They were recently ranked in the top ten on the list of the World's 50 Most Innovative Companies by Fast Company magazine, and we look forward to supporting their growth and innovation for years to come."
In addition, BioMed Realty announced that it acquired The Campus at Lincoln Centre in Foster City, California from Life Technologies for approximately $37.0 million, excluding closing costs. BioMed Realty intends to redevelop the 19-acre site, currently encompassing seven buildings and approximately 280,000 square feet, which may be significantly expanded through the redevelopment process.
According to Kent Griffin, President of BioMed Realty, "The redevelopment of The Campus at Lincoln Centre provides the opportunity to expand our footprint and presence on the peninsula in the San Francisco Bay area to deliver an optimal environment for life science organizations and long-term value for our stockholders."
As a result solely of the early lease termination income and the related charge-off of accrued straight-line rents and lease intangibles from the Elan lease, the company's 2013 net income and funds from operations (FFO) available to common shares are expected to increase approximately $22 million and $35 million, respectively. Approximately 60% of these amounts are expected to be recognized in the first quarter of 2013, with the balance expected to be recognized in the second quarter of 2013.
FFO is a supplemental non-GAAP financial measure used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income available to common stockholders to FFO for 2012 and definitions of terms are included in BioMed Realty's earnings release issued on February 5, 2013 and available in the Investor Relations section of the company's website at www.biomedrealty.com.
About BioMed Realty Trust
BioMed Realty delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty owns or has interests in properties comprising approximately 13.2 million rentable square feet. The company's properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, Maryland, San Diego, New York/New Jersey, Pennsylvania and Seattle, which have well-established reputations as centers for scientific research. Additional information is available at www.biomedrealty.com.
Forward-Looking Statements – BioMed Realty
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: failure to manage effectively the company's growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully, including the acquisition and redevelopment of The Campus at Lincoln Centre; general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the life science industry or the company's target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, developments and other investments, and the ability to refinance indebtedness as it comes due; failure to maintain the company's investment grade credit ratings with the ratings agencies; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with downturns in foreign, domestic and local economies, changes in interest rates and foreign currency exchange rates, and volatility in the securities markets; ownership of properties outside of the United States that subject the company to different and potentially greater risks than those associated with the company's domestic operations; risks associated with the company's investments in loans, including borrower defaults and potential principal losses; potential liability for uninsured losses and environmental contamination; risks associated with the company's potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company's dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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