Blackstone Recaps $14.6B Life Science Business

BioMed Realty owns 11.3 million square feet of space across major U.S. and global markets.
Gateway of Pacific. Image courtesy of BioMed Realty

Blackstone—through Blackstone Real Estate Partners VIII and co-investors—has decided to sell BioMed Realty to a group led by existing BioMed Realty investors. The internal deal, valued at $14.6 billion, is part of the REIT’s long-term strategy to recapitalize the life science unit.

Existing investors were given the option to either exit for cash or reinvest sale proceeds. The transaction is set to generate $6.5 billion in cumulative profits for the sellers. Blackstone has begun a “go-shop” process on behalf of BioMed’s current investors, with the sale expecting to close within five business days of the conclusion of the process.

Morgan Stanley & Co. served as financial advisor for the seller, while Eastdil Secured represented the buyers as financial advisor. Additionally, Simpson Thacher & Bartlett offered legal advisor services to Blackstone.

Blackstone acquired the company in January 2016. BioMed Realty is now the largest private owner of life sciences office space and owns 11.3 million square feet across core life sciences markets such as Boston/Cambridge, San Diego, San Francisco, Seattle and Cambridge, U.K.

Blackstone Head of Real Estate for the Americas Nadeem Meghji and BioMed Realty President & CEO Tim Schoen have both voiced their confidence in the resilience of the life sciences sector. While the industry was expecting steady growth before the pandemic, the race for a COVID-19 vaccine has also bolstered demand.