The Real Deal Miami

Blackstone to buy BioMed in $8B transaction

BioMed merged with Wexford in 2013, which is expanding the UM Life Science + Tech Park

October 08, 2015 09:45AM

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Jon Gray

Jonathan Gray

From the New York website: Blackstone’s real estate group is taking another massive bet, this time on property linked to the U.S. biotechnology sector.

The private equity colossus will snap up BioMed Realty Trust in a stock transaction worth a staggering $8 billion.

Blackstone will pay $23.75 a share for the San Diego-based REIT, a 24 percent premium on its pre-deal share price. 

BioMed controls a portfolio of 115 medical office and laboratory buildings, primarily concentrated around Boston, San Francisco, San Diego and Seattle, according to Real Capital Analytics.

“We believe in the long-term fundamentals of this sector, particularly in locations with top-tier educational and research institutions,” said Nadeem Meghji, Blackstone’s co-head of US real estate acquisitions, in a statement.

In 2013, BioMed merged with Wexford Science & Technology, which is seeking Miami-Dade County funds for a portion of its $112.1 million expansion of the University of Miami Science and Technology Park. The expansion consists of a 14-story mixed-use hotel and innovation center.

Blackstone has been on a buying tear as of late. Last month, it picked up Strategic Hotels and Resorts‘s 18-property portfolio for $6 billion. And in August, the firm partnered with RXR Realty to buy the Helmsley Building at 230 Park Avenue in Midtown for $1.2 billion.

The Real Deal recently profiled the company, questioning whether its remarkable real estate success would continue. – Ariel Stulberg