Blackstone Real Estate Completes Acquisition of Premier Lab Office Portfolio from Brookfield Fund

Rhea-AI Summary

Blackstone (NYSE: BX) announced the completion of its $3.4 billion acquisition of a 2.3 million square foot lab office portfolio from a Brookfield Asset Management fund. This deal is part of Blackstone Property Partners Life Sciences’ core+ return strategy. Post-sale, 97% of the portfolio will be concentrated in Cambridge, Massachusetts, a key hub for life sciences. BioMed Realty, with an enterprise value of approximately $20 billion, will manage over two-thirds of the assets in the Boston/Cambridge area, highlighting the strategic importance of this acquisition in a booming market.

Positive

• Acquisition of a prime 2.3 million square foot lab office portfolio for $3.4 billion.
• 97% of the portfolio located in Cambridge, a leading life sciences hub.
• BioMed Realty, with a $20 billion enterprise value, manages a significant portion of the assets.

Negative

• None.

Blackstone (NYSE: BX) today announced that Blackstone Property Partners Life Sciences (“BPP Life Sciences”) has completed its previously announced acquisition of a best‐in‐class, 2.3 million square foot portfolio of lab office buildings from a Brookfield Asset Management real estate fund for $3.4 billion. BPP Life Sciences is Blackstone Real Estate’s long-term, perpetual capital, core+ return life sciences strategy. BPP Life Sciences owns BioMed Realty, Blackstone’s life science real estate portfolio company.

Concurrent with close, Blackstone executed upon the sale of two life sciences assets affiliated with Johns Hopkins Medicine to Ventas, Inc. Pro forma for the sale, 97% of the portfolio is concentrated in Cambridge, Massachusetts. Two thirds of BioMed Realty’s platform, which has an enterprise value of approximately $20 billion, is concentrated in the Boston/Cambridge market, one of the fastest growing lab office submarkets in the country due to its adjacency to world-leading academic institutions and the largest cluster of pharmaceutical companies in the U.S.

Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC served as financial advisors to Blackstone, and Simpson Thacher & Bartlett LLP served as legal advisor. Eastdil Secured served as lead financial advisor to Brookfield, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor. Citigroup Global Markets Inc. also provided financial advisory services to Brookfield in connection with the transaction.

The transaction was announced on December 14, 2020.

About Blackstone Real Estate

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $187 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).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210312005478/en/

FAQ

What did Blackstone acquire from Brookfield Asset Management?

Blackstone acquired a 2.3 million square foot lab office portfolio for $3.4 billion.

What is the significance of the Cambridge location for Blackstone's acquisition?

The Cambridge area is a key life sciences hub, housing major academic institutions and pharmaceutical companies.

How much is BioMed Realty's enterprise value?

BioMed Realty has an enterprise value of approximately $20 billion.

When was the acquisition transaction announced?

The transaction was announced on December 14, 2020.