SAN DIEGO, Feb. 20 /PRNewswire-FirstCall/ -- BioMed Realty Trust, Inc. (NYSE: BMR) today announced that its joint venture with PREI(R) (Prudential Real Estate Investors) entered into a secured construction loan with Wachovia Bank, National Association and certain other lenders to provide borrowings of up to approximately $245 million in connection with the construction of 650 East Kendall Street, a roughly 300,000 square foot life sciences building located in Cambridge, Massachusetts.
Proceeds from the construction loan will be used in part to repay a portion of the joint venture's existing $550 million secured acquisition and interim loan facility from KeyBank National Association and certain other lenders and to fund the balance of the anticipated cost to complete construction of the project.
In addition to entering into the new construction loan, the joint venture also extended the term of the existing secured acquisition and interim loan facility by one year to April 3, 2009, with no additional changes to the pricing or terms of the facility.
"The construction loan and extension of the existing loan are important milestones that further enhance the financial flexibility of the joint venture. We are extremely pleased to obtain financing for this construction project prior to pre-leasing given the challenges in the broader financial market. Furthermore, we appreciate the continued strong support of our lending partners," said Kent Griffin, Chief Financial Officer of BioMed Realty Trust.
Roger Pratt, PREI Senior Portfolio Manager, commented, "We are very pleased to have fully financed the construction costs for the joint venture's 650 East Kendall Street property. The success of this financing is a strong testimony to the quality of the project and the sound sponsorship by BioMed and PREI."
The construction loan initially bears interest at a floating rate equal to reserve adjusted LIBOR plus a spread of 150 basis points. The construction loan has a maturity date of August 13, 2010 and is secured by the 650 East Kendall Street property and related collateral.
About BioMed Realty Trust
BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused on Providing Real Estate to the Life Science Industry(R). The company's tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty Trust owns or has interests in 68 properties, representing 104 buildings with approximately 8.5 million rentable square feet, as well as approximately 1.9 million square feet of development in progress. These properties are located predominantly in the major U.S. life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey, which have well-established reputations as centers for scientific research. Additional information is available at http://www.biomedrealty.com.
PREI is the real estate investment management business of Prudential Financial, Inc. (NYSE: PRU). PREI's specialized operating units offer a broad range of investment opportunities and investment management services in the United States, Europe, Asia, and Latin America. The company's fund management operations, located in Parsippany, New Jersey; Atlanta, Georgia; Munich; London; Mexico City; and Singapore, are supported by a network of local offices throughout the world. As of September 30, 2007, PREI managed $40.7 billion of gross assets ($29.4 billion net) on behalf of more than 400 clients and is ranked among the largest real estate investment managers. For more information, visit http://www.prei.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the life science industry or the company's target markets; risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; failure to manage effectively the company's growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; potential liability for uninsured losses and environmental contamination; risks associated with the company's potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company's dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|SOURCE BioMed Realty Trust, Inc.|
Copyright©2008 PR Newswire.
All rights reserved