Human Genome Sciences Enters $425 Million Sale Leaseback of HQ and Lab Complex

BioMed Realty Trust Web Site - May 2, 2006

BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has signed a definitive purchase and sale agreement with Human Genome Sciences, Inc. (Nasdaq: HGSI) to acquire Human Genome Sciences' large-scale manufacturing and headquarters office and laboratory facilities located in Rockville, Maryland. The portfolio includes a total of approximately 925,000 rentable square feet of existing laboratory, office and manufacturing space, with the headquarters facility consisting of three recently constructed buildings and a parking structure, as well as undeveloped land that management estimates can support over 500,000 rentable square feet of additional laboratory and office space. The total purchase price is approximately $425 million, excluding estimated closing costs. BioMed expects the initial capitalization rate for the acquired portfolio to be in excess of nine percent. The acquisition is anticipated to close in the second quarter of 2006, and is subject to customary closing conditions.

Human Genome Sciences, a public biopharmaceutical company with a pipeline of novel protein and antibody drugs directed toward large markets that have significant unmet medical need, will lease the buildings pursuant to 20-year triple-net leases. The leases provide for a security deposit equal to one year's rent, and provide HGSI with the right to extend each lease for two 10-year terms and to repurchase the properties under certain circumstances. Sphere: Related Content