Alexandria Real Estate Equities, Inc. Executes Lease Amendment with ARIAD Pharmaceuticals, Inc. for Remaining 142,000 RSF at 75/125 Binney Street Build-to-Suit Facility in Cambridge, Massachusetts
ARIAD's leased premises will increase to approximately 99.5% of the project
Alexandria also announces the closing of a construction loan for approximately $250 million
With two build-to-suit facilities for ARIAD and Biogen Idec underway, Alexandria continues to make strong progress on the realization of the Alexandria Center at Kendall Square development corridor
PASADENA, Calif., Sept. 16, 2013 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the leading owner, operator, and developer of high-quality, sustainable real estate for the broad and diverse life science industry, is pleased to announce that ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA), a leading global oncology company, executed a lease amendment increasing its premises at 75/125 Binney Street by approximately 142,000 rentable square feet (RSF). The lease amendment brings ARIAD's total leased premises to approximately 386,000 RSF, or 99.5%, of the project. The remaining approximately 2,000 RSF is slated for retail. Alexandria expects to deliver the 75/125 Binney Street facility to ARIAD in the first quarter of 2015.
Alexandria's announcement follows the January 2013 execution of a 15-year lease with ARIAD for approximately 244,000 RSF, or 63%, of the 75/125 Binney Street facility. Under the lease amendment, ARIAD's headquarters will now feature a new five-story glass-walled atrium, which will provide unique collaboration spaces, as well as pedestrian access between Binney Street and Rogers Street Park.
In association with the amendment of ARIAD's lease, Alexandria also announces the execution of a construction loan of approximately $250 million. The lenders include The Bank of New York Mellon, as Lead Arranger and Agent, Union Bank, N.A., as Document Agent, TD Bank, N.A., and Compass Bank. The term of the loan is four years and Alexandria shall have the right to extend it for an additional year. The loan has a variable interest rate of Libor + 135 basis points.
Located in Kendall Square, hailed as the most innovative square mile on the planet, the Alexandria Center at Kendall Square is Cambridge's newest destination for innovation, collaboration, and translation. This 11-acre, world-class science park will feature four ground-up first-in-class developments – 50 Binney Street, 75/125 Binney Street, 100 Binney Street, and 225 Binney Street – aggregating approximately 1.7 million RSF of high-quality laboratory/office space as well as approximately 200,000 RSF of residential space. In 2011, Alexandria kicked off the development of the Alexandria Center at Kendall Square with an approximately 305,000 RSF build-to-suit for Biogen Idec, Inc. at 225 Binney Street. Biogen Idec is a leading biotechnology company specializing in innovative therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders. The project is anticipated to be completed in the next two to three weeks. ARIAD's build-to-suit at 75/125 Binney Street will be the second development at the Alexandria Center at Kendall Square. With a plethora of collaborative and convenient amenities at the Alexandria Center at Kendall Square, including a two-acre landscaped park, restaurants from the area's top chefs, state-of-the-art meeting and event spaces with thought leadership curated by Alexandria, high-quality hotels, and innovative wellness centers, the science park will provide leading life science entities with a unique opportunity to drive productivity, accelerate innovation, and recruit and retain the brightest scientific minds.
Alexandria is the dominant life science owner and operator in the Greater Boston cluster with approximately 3.8 million RSF of high-quality laboratory/office space (including development and redevelopment assets) located adjacent to world-renowned academic medical research centers. Alexandria currently serves approximately 100 life science client tenants in the Greater Boston cluster.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), a self-administered and self-managed investment-grade real estate investment trust (REIT), is the largest and leading REIT focused principally on owning, operating, developing, redeveloping and acquiring high-quality, sustainable real estate for the broad and diverse life science industry. Founded in 1994, Alexandria was the first REIT to identify and pursue the laboratory niche and has since had the first-mover advantage in the core life science cluster locations including Greater Boston, the San Francisco Bay Area, San Diego, New York City, Seattle, Suburban Washington, D.C., and Research Triangle Park. Alexandria's high-credit client tenants span the life science industry, including renowned academic and medical institutions, multinational pharmaceutical companies, public and private biotechnology entities, United States government research agencies, medical device companies, industrial biotech companies, venture capital firms, and life science product and service companies. Investment-grade client tenants represented 46% of Alexandria's total annualized base rent as of June 30, 2013. As the recognized real estate partner of the life science industry, Alexandria has a superior track record in driving client tenant productivity, collaboration, and innovation through its best-in-class laboratory and office space adjacent to leading academic medical research centers, unparalleled life science real estate expertise and services, and longstanding and expansive network in the life science community. We believe these advantages result in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For additional information on Alexandria, please visit www.are.com.
SOURCE Alexandria Real Estate Equities, Inc.