BXP Agrees to Sell a 45% Interest in Kendall Square Life Sciences Properties
November 14 2023 - 6:00AM
Business Wire
$746.4 Million Investment by Norges Bank
Investment Management to Form Joint Ventures To Own Two Properties
Totaling Approximately 810,000 Square Feet
BXP (NYSE: BXP), the largest publicly traded developer, owner,
and manager of premier workplaces in the United States, today
announced that it has entered into agreements to sell a 45%
interest in two life sciences development properties located in
Kendall Square in Cambridge, Massachusetts, to Norges Bank
Investment Management at a gross valuation of approximately $1.66
billion or $2,050 per square foot. The properties – 290 Binney
Street and 300 Binney Street – total 810,000 square feet and are
each 100% pre-leased. BXP will retain a 55% interest in the joint
ventures and will provide development, property management, and
leasing services for the ventures. NBIM funded approximately $212.9
million at closing for its investment in 300 Binney Street and,
upon closing of its investment in 290 Binney Street, NBIM’s
investment will reduce BXP’s share of estimated future development
spend over time by approximately $533.5 million.
“We are delighted to deepen our longstanding partnership with
Norges Bank Investment Management,” said Owen Thomas, Chairman
& CEO, BXP. “Their meaningful investment in BXP’s newest life
sciences development in the heart of Kendall Square demonstrates
the value placed by investors on well located, well leased premier
workplaces with strong stewardship.”
“We are very pleased to grow our portfolio in Greater Boston,”
said Mie Holstad, Chief Real Assets Officer at Norges Bank
Investment Management. “The investment aligns with our long-term
strategy, and we are delighted to strengthen our partnership with
BXP in a sector where we have high conviction.”
“BXP’s newest joint venture with NBIM solidifies what is already
a key strategic partnership,” said Cole Pinney, Vice President,
Joint Venture Client Relationships, BXP. “We look forward to
continued collaboration between our organizations.”
290 Binney Street is a 16-story, 570,000 square foot
laboratory/life sciences property currently under construction and
100% pre-leased to AstraZeneca, with initial occupancy expected in
April 2026.
300 Binney Street is a six-story property currently under
redevelopment into 240,000 square feet of laboratory/life sciences
space and 100% pre-leased to the Broad Institute, with projected
occupancy expected in January 2025.
About BXP Life Sciences
BXP Life Sciences consists of an existing portfolio of
approximately 3.9 million square feet focused on the specific needs
of the life sciences industry, primarily in the leading innovation
markets of Boston, Cambridge, and Waltham/Lexington, Massachusetts,
Montgomery County, Maryland, and South San Francisco and Los
Angeles, California. In addition, BXP has approximately 5.8 million
square feet of life sciences-focused development opportunities, as
well as approximately 1.6 million square feet of current lab
developments and redevelopments in process that are expected to
deliver in the next three years.
About BXP
BXP (NYSE: BXP) is the largest publicly traded developer, owner,
and manager of premier workplaces in the United States,
concentrated in six markets - Boston, Los Angeles, New York, San
Francisco, Seattle, and Washington, DC. BXP is a fully integrated
real estate company, organized as a real estate investment trust
(REIT), with more than 50 years of experience developing, owning,
managing, and acquiring exceptional properties in dynamic gateway
markets. As of September 30, 2023, including properties owned by
unconsolidated joint ventures, BXP’s portfolio totaled 53.5 million
square feet and 190 properties, including 11 properties under
construction/redevelopment. For more information, please visit our
website at www.bxp.com or follow us on LinkedIn or Instagram.
This press release contains forward-looking statements within
the meaning of the Federal securities laws. You can identify these
statements by our use of the words “will,” “expects,” “intends” and
similar expressions that do not relate to historical matters. These
statements are based on our current plans, expectations,
projections and assumptions about future events. You should
exercise caution in interpreting and relying on forward-looking
statements because they involve known and unknown risks, trends,
uncertainties and other factors which are, in some cases, beyond
BXP’s control and could materially affect actual results,
performance or achievements. These factors include, without
limitation, BXP’s ability to satisfy the closing conditions of the
second joint venture transaction on the terms currently
contemplated or at all, BXP’s ability to complete the development
and redevelopment projects referenced above on time, within budget
or at all, and other risks and uncertainties detailed from time to
time in BXP’s filings with the SEC. BXP does not undertake a duty
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20231113715601/en/
At BXP Laura Sesody Senior Vice President, Corporate
Marketing & Communications lsesody@bxp.com
Helen Han Vice President, Investor Relations hhan@bxp.com
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