BioMed Realty Trust, Inc. (BMR), a real estate investment trust (REIT), recently entered into an agreement to acquire ‘Granta Park’ property in Cambridge, United Kingdom for approximately $196.0 million, excluding transaction cost.
The company expects to incur transaction costs of approximately $12 million, including transfer taxes, brokerage commissions and legal, tax and advisory fees, which will be reflected in second quarter 2012.
Granta Park consists of 11 laboratory and office buildings spanning 472,200 square feet of space along with approximately 138,400 square feet of development and expansion rights. The park is fully leased to 11 tenants with an average remaining lease term of more than eight years. Post-acquisition, Bio Med Realty expects the annual cash net operating income from Granta Park to be approximately $15.8 million.
This acquisition will be beneficial to BioMed Realty as Granta Park is located in one of the premier life science clusters in Europe. The University of Cambridge further provides the advantages of a highly skilled work force along with a strong base of financial partners and commercial life science organizations.The recently developed campus already boasts of renowned life science research organizations and has the potential for further development, making it an attractive investment opportunity for the company. The Granta Park acquisition is in line with the company’s strategy of acquiring the high-quality real estate which has the potential to generate high returns.
BioMed Realty focuses on providing real estate solutions to the life science industry in the United States. Its tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies, and other entities involved in the life science industry.
BioMed Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Liberty Property Trust. (LRY) also holds a Zacks #3 Rank
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