BioMed Realty Prices $400M Public Offering

Some of the proceeds from the offering will be directed toward the partial repayment of borrowings under BioMed Realty L.P.'s $720 million unsecured line of credit. As of the close of 2010, the outstanding debt totaled $392 million.

March 24, 2011
By Barbra Murray, Contributing Editor

BioMed Realty L.P., the operating partnership subsidiary of life sciences real estate REIT BioMed Realty Trust Inc., has priced a public offering of $400 million of Senior Notes that will bear interest at an annual rate of 3.85 percent.

The Senior Notes, due 2016 and priced at 99.365 percent of the principal amount to yield 3.99 percent to maturity, will be senior unsecured obligations of BioMed Realty L.P.; parent company BioMed Realty Trust will guarantee the notes. Some of the proceeds from the offering will be directed toward the partial repayment of borrowings under BioMed Realty L.P.’s $720 million unsecured line of credit. As of the close of 2010, the outstanding debt totaled $392 million.

BioMed Realty Trust’s total revenue reached $386.4 million in 2010, marking a 7 percent increase from 2009. Successful leasing activity had a little something to do with it. During the fourth quarter alone, the company facilitated 13 lease transactions involving an aggregate 329,000 square feet. And 2011 is looking good so far. A spokesman for BioMed Realty–which has a 12.2 million square-foot portfolio spanning the nation’s top life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey–told CPE that demand continues to be strong in virtually all of its markets.

In January, pharmaceutical firm Bionovo Inc. entered into a 10-year lease agreement with BioMed Realty for 51,500 square feet at Bridgeview Technology Park in Hayward, Calif., in San Francisco’s East Bay technology corridor. And in February, Harvard University signed a new 10-year lease for an additional 31,500 square feet at the Center for Life Science | Boston (pictured) for the Hansjorg Wyss Institute for Biologically Inspired Engineering at Harvard University. The transactions, the spokesman said, are indicative of a strong market life sciences market.