Alexandria Real Estate Equities, Inc. to Expand Leading San Diego Presence with Strategic Acquisition of Selected Veralliance Properties, Inc.'s Assets, Interests and Personnel

PASADENA, Calif., Aug. 9 /PRNewswire-FirstCall/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), Landlord of Choice to the Life Science Industry®, today announced that it has entered into a definitive agreement to acquire three life science properties and other selected assets and interests of privately-held Veralliance Properties, Inc., a San Diego-based corporate real estate solutions company focused on the acquisition, development and management of office and life science assets in Southern California.

The transaction is expected to be completed during the third quarter of 2010 and ultimately include key management and operational personnel of Veralliance, including Founder and President, Daniel Ryan, selected operating assets, as well as other interests, together with its broad and deep network. This unique and remarkable combination enhances Alexandria's on the ground execution capabilities for future strategic opportunities, and creates the most widely respected and effective life science real estate operating team in the San Diego region.

Alexandria Real Estate Equities, Inc. maintains the dominant presence in the San Diego life science cluster market, with an asset base approximating 1.7 million square feet as of June 30, 2010. Alexandria's San Diego asset base services more than 30 life science client tenants composed of world renowned academic research institutions and leading public and private life science companies, including The Scripps Research Institute, Sanford-Burnham Medical Research Institute, Amylin Pharmaceuticals, Inc., Eli Lilly and Company, Laboratory Corporation of America Holdings, Ambrx, Inc., Intellikine, Inc., Fate Therapeutics, Inc. and Sapphire Energy, Inc.

Since its inception, Veralliance has demonstrated its forward-thinking acumen and capabilities in real estate development by implementing its "Four Pillars" philosophy of livability, responsibility, productivity and artistry. The company's emphasis on livability involves the integration of features and amenities designed to enhance the quality of the client tenant experience, including state-of-the-art fitness centers, contemporary dining facilities, and outdoor trails and patio areas. Additionally, the company incorporates development practices that demonstrate responsibility to the environment and community, including the integration of features that promote environmental sustainability.  Client tenant companies benefit from increased productivity, with building features designed to promote employee health, encourage collaboration and efficiency, and foster innovation.  The many amenities and features at the company's properties contribute to improved overall employee performance, and are valuable recruiting and retention incentives.  The emphasis on responsible development is matched by Veralliance's passion for creating beautiful environments.  With their many artistic features, these properties provide inspirational work settings.

Commenting on today's announcement, Joel S. Marcus, Chairman and Chief Executive Officer of Alexandria, stated, "This strategic transaction represents a transformative event for our company in the critically important San Diego life science cluster market, which is anchored by a sophisticated talent pool, solid cadre of biopharmaceutical companies, important investment capital base and a deep concentration of leading academic centers, including the University of California, San Diego, The Scripps Research Institute, the Sanford-Burnham Medical Research Institute and the Salk Institute for Biological Studies, among others. While Alexandria has built and has held the life science real estate leadership position in San Diego over the past 15 years, we have been keenly interested in strategically expanding our footprint. As Veralliance is the largest and highest quality private developer of office/laboratory space in the San Diego region, we are very pleased to have the opportunity to enhance our dominant market position by joining forces with their highly experienced management and operational team."

Daniel Ryan, Founder and President of Veralliance, stated, "I, and my team at Veralliance, are extremely proud to become an integral part of Alexandria, which is the undisputed leader in providing real estate to the life science industry. During my 15-plus years of experience in life science real estate development, I have viewed, with great respect, the dominant position of Alexandria and their commitment to best-in-class assets and operations. Alexandria has an unparalleled track record of attracting world-class life science tenants and a demonstrated ability to assemble a blend of quality life science real estate, operational efficiencies, environmentally responsible components and high quality value-add services. These attributes are highly synergistic with those of Veralliance."

About Veralliance Properties

Veralliance Properties, headquartered in San Diego, California, is a corporate real estate solutions company focused on the acquisition, development and management of Southern California real estate. The company's portfolio is focused on office and life science assets. For more information on Veralliance Properties, see the company's website at www.veralliance.com.

About Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities, Inc., Landlord of Choice to the Life Science Industry®, is the largest owner and preeminent REIT focused principally on cluster development through the ownership, operation, management, selective redevelopment, development, and acquisition of properties containing life science laboratory space.  Alexandria is the leading provider of high-quality, environmentally sustainable real estate, technical infrastructure, and services to the broad and diverse life science industry. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, biofuels, product, service, and translational entities, as well as government agencies. Alexandria's operating platform is based on the principle of "clustering," with assets and operations located in key life science markets.  Alexandria's asset base contains 161 properties approximating 12.7 million rentable square feet consisting of 156 properties approximating 11.8 million rentable square feet (including spaces undergoing active redevelopment) and five properties undergoing ground-up development approximating an additional 865,000 rentable square feet.  In addition, Alexandria's existing asset base will enable it to grow to approximately 24.1 million rentable square feet.

This press release contains forward-looking statements within the meaning of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our Annual Report on Form 10-K and our other periodic reports filed with the Securities and Exchange Commission.

SOURCE Alexandria Real Estate Equities, Inc.