Blackstone to acquire life-sciences portfolio for $3.45B

2.3 million-square-foot portfolio is next to Massachusetts Institute of Technology

National /
Dec.December 14, 2020 11:30 AM
Blackstone’s Nadeem Meghji (Blackstone, iStock)

Blackstone’s Nadeem Meghji (Blackstone, iStock)

Blackstone Group has agreed to pay Brookfield Asset Management $3.45 billion for a life-sciences real estate portfolio located mostly in the Cambridge, Massachusetts, market.

The 2.3-million-square-foot portfolio of lab buildings is centered on a 30-acre campus next to Massachusetts Institute of Technology. More than 95 percent of the portfolio is leased thanks to strong demand from pharmaceutical and other life-sciences companies that want to be close to MIT students, the Wall Street Journal reported.

The life-sciences sector has been one of the few bright spots for commercial real estate in the pandemic, as most office workers and would-be travelers continue to stay home. Life-sciences jobs often require special equipment and infrastructure, making it harder to work remotely.

“You can’t create a new drug from your living room or kitchen. You need to be in physical lab space,” Nadeem Meghji, Blackstone’s head of real estate for the Americas, told the newspaper.

Prior to the Cambridge deal, Blackstone recapitalized BioMed Realty, the largest private owner of life-sciences property in the U.S., for $14.6 billion. The firm is also close to acquiring another two life-science buildings in the Boston-Cambridge market for $1 billion, according to people familiar with the matter, the Journal reported.

Even before the health crisis, Blackstone was one of the world’s leading investors in life-sciences real estate.

“The pandemic has only amplified the need for vital drug discovery and shined a light on the importance of innovation in life sciences,” Meghji said. [WSJ] — Akiko Matsuda


Related Articles

arrow_forward_ios
These hotel markets have entered a depression
These hotel markets have entered a depression
These hotel markets have entered a depression
Cherre CEO L.D. Salmanson (Cherre/Facebook)
Real estate data firm Cherre raises $50M
Real estate data firm Cherre raises $50M
(Tropicana Las Vegas via Facebook, Bally's Corp)
Bally’s buys Las Vegas’ Tropicana casino for $150M
Bally’s buys Las Vegas’ Tropicana casino for $150M
HqO CEO Chase Garbarino (HqO via Facebook)
Big landlords invest $60M in “tenant experience” startup HqO
Big landlords invest $60M in “tenant experience” startup HqO
Doctors and medical professionals have remained on time with their rent payments in the past year (iStock)
Medical offices are just what the doctor ordered for landlords
Medical offices are just what the doctor ordered for landlords
The rate of loans sent to special servicers continued to fall in March. (Unsplash)
CMBS special servicing rate declines in March
CMBS special servicing rate declines in March
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
Dollar General thrives amid retail apocalypse
Dollar General thrives amid retail apocalypse
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...