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Alexandria mulls life sciences deals similar to San Francisco JV, co-CEO says from SNL Real Estate Daily Alexandria mulls life sciences deals similar to San Francisco JV, co-CEO saysByline: Jake Mooney Alexandria Real Estate Equities Inc.'s joint venture with Boston Properties Inc. on a South San Francisco life sciences "mega-campus" could foreshadow similar transactions with neighboring landlords at other properties. On an earnings conference call, Alexandria co-CEO Steve Richardson called the Boston Properties transaction, in which the companies formed a joint venture to develop, own and operate an office and laboratory campus that currently stands at roughly 1.1 million square feet, a "very unique opportunity" that will not necessarily lead to future ventures between the two parties. Still, Executive Chairman Joel Marcus added that Alexandria has been taking a closer look at its properties to see if there are opportunities to strike deals with neighboring owners. At the 29.3-acre South San Francisco campus, the two companies have owned adjacent properties for decades, and Alexandria had a long-term perpetual easement across one Boston Properties-owned parcel, executives said. The executives declined to provide financial details of the joint venture transaction, but said roughly 50% of the campus offers value-creation opportunities over time. The venture plans to develop three new facilities totaling 637,000 square feet and redevelop one Boston Properties office building, and the completed campus is eventually expected to total 1.7 million square feet. Marcus said, in response to an analyst's question, that Alexandria has been examining its other properties to find transaction opportunities with neighbors and that it is "something we always think about" and "clearly ... part of our long-term strategy," citing the company's expansion of its Campus Pointe property in San Diego. Asked whether any other talks are underway on projects of a similar scope to the South San Francisco venture, Marcus replied, "Probably enough breaking news today. Stay tuned." As to whether the company has performed a deep dive into similar opportunities, he said, "The answer is yes. Very much so, yes." |
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