Biomed Realty Trust Inc (NYSE:BMR) a landlord with assets catering to biotechnology firms reported exploring a sale and has received interest from various firms including Blackstone Group LP. The real estate investment trust is working with Morgan Stanley on a prospective deal, informed the people, who said not to be identified as the talks are private. Discussions are underway and there is no assurance a deal will be reached.
The buzz
Peter Rose, a spokesperson for NY-based Blackstone Group, and Heather Dratler, a representative of Biomed Realty Trust Inc (NYSE:BMR), didn’t provide any details on the matter. Mary Claire Delaney who is a spokeswoman for Morgan Stanley declined to comment. As per the real estate research entity Green Street Advisors LLC, the real estate investment trust, which went public in year 2004, controls nearly $8 billion in premium laboratory assets.
The scope
Here it is vital to mention that health-care spending comes in the list of the fastest-growing verticals in the U.S. economy. The division supports demand for laboratory space from different firms. These properties of lab space are meant to accommodate pharmaceutical manufacturers and developers. Michael Knott, the Managing Director of Green Street, talked about demand drivers. He said that biotech firms are raising funds over first and the drug approval rates from the U.S.FDA are much better compared to the past. This change indicates positive demand drivers, which essentially is encouraging for Biomed Realty.
The market
The values for different types of commercial assets are climbing in the U.S. This change in sentiment can be attributed to investors’ interest towards real estate to increase returns with central banks across the world compressing interest rates to boost economic growth. Acquiring REITs has become an effective means for acquirers such as Blackstone to put large amounts of funds to work. Blackstone is the largest and most reputed private equity firm across the world.
