BioMed Realty Trust Announces Joint Venture With Prudential Real Estate Investors

SAN DIEGO, April 9 /PRNewswire-FirstCall/ -- BioMed Realty Trust, Inc. today announced that it has formed a joint venture with Prudential Real Estate Investors (PREI(R)). Concurrent with its formation, the joint venture completed the previously announced acquisition of a portfolio of assets from affiliates of Lyme Timber Company. The portfolio includes approximately 600,000 square feet of life science space recently completed or under construction at the Rogers Street project and land that can support approximately 266,000 square feet of life science laboratory and office space at Kendall Square in Cambridge, Massachusetts.

The joint venture acquired the portfolio for a total purchase price of $507 million, excluding closing costs. In connection with the acquisition, the joint venture obtained a $550 million secured acquisition and interim loan facility from KeyBank National Association, and initially borrowed approximately $427 million of the purchase price at closing. The remainder of the purchase price was funded 80% on behalf of institutional investors in a value-added commingled fund advised by PREI, and 20% by BioMed.

"We are extremely pleased to have partnered with PREI on the acquisition of this portfolio. As our investors know, we have been very patient in evaluating various joint venture alternatives and we believe that this particular partnership with PREI will be of significant benefit to our company and our shareholders. PREI has an excellent reputation and investment track record. More importantly to us, they are familiar with life science properties and understand the unique requirements of our tenants and our properties. This transaction highlights the continued maturation of the life science real estate industry and attractiveness of this property type to the sophisticated institutional real estate investor community," said Alan D. Gold, President and Chief Executive Officer of BioMed Realty Trust. "We are very proud of the fact that PREI chose our team to partner with on their life science real estate investments."

"PREI's venture with BioMed is consistent with our focus on leveraging off of operating partners that have the expertise to help us invest in specialty property types with attractive risk-adjusted returns," said Roger Pratt, PREI Senior Portfolio Manager. "We believe that the life science segment has tremendous opportunities for growth and that BioMed has the right team to identify and execute on these opportunities. We look forward to helping BioMed capitalize on its expanding activities in this exciting sector."

Kent Griffin, Chief Financial Officer of BioMed Realty Trust, added, "Our new loan facility for the joint venture financed roughly 85% of the initial purchase price and also provides capacity to fund all of the anticipated costs to complete construction and lease 301 Binney Street. With PREI's financial support, this facility provides cost-effective debt financing, further enhancing our investment returns. After completing this joint venture transaction and related financing, we are comfortable with our overall capital position - with more than sufficient capacity to fund existing redevelopment and development projects, as well as our ongoing acquisition pipeline. BioMed remains committed to maintaining a conservative balance sheet and access to diversified sources of capital in order to capitalize on attractive investment opportunities."

In addition to receiving its proportionate returns from the joint venture investment, under the terms of the joint venture, BioMed will have the ability to enhance its returns through traditional joint venture promotes. BioMed will be responsible for all day-to-day operations and development of the portfolio, and will receive market rate fees for property management and development services. Raymond James & Associates, Inc. acted as financial advisor to BioMed on the joint venture formation.

The Rogers Street project in Cambridge includes two life science properties - 320 Bent Street and 301 Binney Street. The recently completed 320 Bent Street property represents 185,000 square feet of office and laboratory space, which is fully leased to two tenants, Schering-Plough Corporation and Microbia, Inc. The 301 Binney Street property is a 420,000 square foot life science project. The project is 27% pre-leased and under construction. The joint venture intends to invest approximately $100 million to complete the project by late 2007. The Rogers Street project also includes a fully leased 37-unit apartment complex and the Binney Street garage, which can accommodate approximately 500 parking spaces. The Rogers Street project is subject to a ground lease with 55 years remaining on the lease term.

The Kendall Square project includes a number of parcels in and around Kendall Square, including 650 East Kendall Street, which the joint venture intends to develop into an approximately 266,000 square foot laboratory and office building. The site is directly adjacent to BioMed's 675 West Kendall Street and 500 Kendall Street properties, which are primarily leased to Vertex Pharmaceuticals Incorporated and Genzyme Corporation, respectively. The Kendall Square project also includes a number of additional pad sites for future development and an approximately 1,400-space underground parking garage that supports the Kendall Square properties.

Additionally, as part of the portfolio, the joint venture acquired a development parcel adjacent to The University of Texas M.D. Anderson Cancer Center in Houston, Texas, and also properties in the Science Park at Yale in New Haven, Connecticut.

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(TM). 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 66 properties, representing 99 buildings with approximately 8.4 million rentable square feet, 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/.

About PREI

Prudential Real Estate Investors (PREI(R)) is the real estate investment management business of Prudential Financial, Inc. . 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 December 31, 2006, PREI managed $35.8 billion of gross assets ($26.2 billion net) on behalf of more than 300 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.