Wexford Science & Technology To Merge With BioMed Realty Trust

        Wexford Science & Technology To Merge With BioMed Realty Trust

BioMed Realty Adds 1.6 Million Square Foot Portfolio & Expands University /
Research Institution Segment to 18% of Annualized Base Rents

PR Newswire

SAN DIEGO and BALTIMORE, March 26, 2013

SAN DIEGO and BALTIMORE, March 26, 2013 /PRNewswire/ -- BioMed Realty Trust,
Inc. (NYSE: BMR) announced today that it has entered into a definitive
agreement to merge with Wexford Science & Technology, LLC, a subsidiary of
Wexford Equities, LLC, furthering BioMed Realty's position as the leading
provider of real estate to the life science industry. Wexford Science &
Technology is a private real estate investment and development company that
owns and develops institutional quality life science real estate for academic
and medical research organizations, and that boasts well-regarded skills for
urban development and redevelopment of life science real estate. The
aggregate consideration for Wexford Science & Technology is approximately $640
million, excluding transaction costs and subject to adjustment based on
working capital levels and construction and development costs incurred prior
to closing. Wexford Science & Technology will operate as a wholly owned
subsidiary of BioMed Realty.

"The combination of BioMed Realty and Wexford Science & Technology further
expands our footprint into the university markets with high-quality assets,
credit tenants and long-term leases," said BioMed Realty's Chairman and Chief
Executive Officer, Alan D. Gold. "In addition, it accelerates our growth as
the leading provider of real estate to the life science industry."

Approximately $551 million of the initial consideration is for Wexford Science
& Technology's operating portfolio which includes approximately 1.6 million
rentable square feet of newly developed, state-of-the-art research facilities
in high-barrier sites located on or immediately adjacent to leading academic,
medical system and research institution campuses and in close proximity to the
local market demand drivers. The operating portfolio, all of which was
developed and delivered between 2005 and 2011, is approximately 86% leased,
with 66% of annualized base rents generated from academic and medical
institutions and A-rated life science companies having an average remaining
lease term of 13 years. Top tenants by annualized base rents include, among
others: the University of Pennsylvania Health System; Washington University in
St. Louis; Wake Forest University; the University of Maryland; the University
of Miami; Old Dominion University; the Illinois Institute of Technology and
Penn State University.

Approximately $89 million of the initial consideration is for projects
currently under development. Wexford Science & Technology has approximately
935,000 square feet of rentable space currently under construction in three
projects that are, collectively, approximately 68% pre-leased, anchored by the
University of Pennsylvania Health System, Wake Forest University and
Washington University in St. Louis. Wexford Science & Technology also owns
parking garages in Philadelphia and Baltimore with 419 and 638 stalls,
respectively, that support Wexford Science & Technology's life science
developments, and owns additional land parcels that can support an estimated
300,000 square feet in additional development potential.

Kent Griffin, President and Chief Operating Officer of BioMed Realty,
commented, "Beyond the opportunity to add the high-quality assets of the
operating portfolio and the attractive development pipeline, we are
particularly excited about the strategic opportunity to further penetrate the
university segment with the addition of the team from Wexford Science &
Technology. This group, which includes seasoned life science real estate
experts with a successful track record of serving the specialized needs of
universities, university-related institutions and healthcare systems, will
continue to operate under the leadership and direction of James Berens,
providing additional depth of skills and breadth of capabilities to our
operating platform."

Commenting on the merger, Mr. Berens said, "BioMed Realty is the ideal partner
for Wexford Science & Technology because of their leadership position in the
life science industry, and our shared technical expertise and understanding of
and approach to life science real estate. In addition, BioMed Realty brings
scale, financial strength, industry reach and a breadth of relationships that
enhance our value proposition to our clients and our opportunity set within
the academic and medical research communities. Equally important is the
cultural fit of the two companies, where commitments to long-term
relationships and supporting transformational research and groundbreaking
science are values woven into the fabric of both companies."

Transaction Benefits

  oFurther penetration of high-quality university and medical system segment
    of life science real estate

       oContribution of rents from universities and research institutions
         increases from 13% of annualized base rents to 18% of annualized base
         rents
       oContribution of rents from A-rated public life science companies,
         universities and research institutions increases to 41% of annualized
         base rents

  oAddition of depth of expertise and key relationships in the academic and
    medical research segment of life science real estate

       oPotential for accelerated external growth opportunities, including
         active development program expanded from 53,000 square feet to
         approximately 988,000 square feet

  oRealization of expanded size, scale and diversification on a pro forma
    basis

       oTotal portfolio of approximately 15.9 million square feet, upon
         completion of active developments
       oAnnualized base rents of approximately $497 million
       oReduction in top ten tenant concentration from 50% to 45% of
         annualized base rents
       oFurther geographic diversification, with Boston/Cambridge remaining
         the largest market at 32% of annualized base rents

The figures above are as of December 31, 2012, giving pro forma effect to
BioMed Realty's previously announced February 2013 acquisition of Woodside
Technology Park in Redwood City, California and the expected merger with
Wexford Science & Technology. Annualized base rents represent the monthly
contractual rent as of December 31, 2012, or if rent had not yet commenced,
the first monthly rent payment due at each rent commencement date,
annualized. Tenant classifications are based on management's estimates. Pro
forma estimates are not necessarily indicative of actual or future results.

Financial Impact of the Merger

BioMed Realty's initial investment totals approximately $640 million, which is
subject to adjustment based on working capital levels and construction and
development costs incurred prior to closing, and includes approximately $169
million in assumption of debt at fair-value (net of funded reserves),
approximately $133 million of common equity of BioMed Realty and its operating
partnership subsidiary (of which $125 million may be payable in cash or common
stock at BioMed Realty's election), and the balance payable in cash. The
company estimates that the net cost to complete the three active development
projects described above is approximately $159 million, and expects to fund
those projects in full in 2013 and 2014. 

BioMed Realty estimates the in-place cash and GAAP net operating income yields
to be approximately 6.5% and 7.3%, respectively. These yields are based on
the estimated annualized third quarter 2013 net operating income plus the
backlog of approximately $2.7 million associated with previously signed leases
for which cash and GAAP rents have not yet commenced, and the purchase price
allocation to the operating portfolio discussed above. These estimates do not
include the benefits of any future leasing in the portfolio.

As a result of the transaction, the company anticipates general and
administrative expense to increase to a total of approximately $12 million to
$12.5 million per quarter.

Net operating income is a supplemental non-GAAP financial measure used in the
real estate industry to measure and compare operating performance at the
property level. A complete reconciliation containing adjustments from GAAP
net income available to common stockholders to cash and GAAP net operating
income for 2012, and definitions of terms, are included in BioMed Realty's
supplemental operating and financial data for the quarter ended December 31,
2012, available in the Investor Relations section of the company's website at
www.biomedrealty.com. The merger is subject to the receipt of lender, ground
lessor and other third-party consents, waivers of rights of first offer and
customary closing conditions, and BioMed Realty can offer no assurances that
the merger will close on the terms described herein, or at all. The
transaction is expected to close in or about the third quarter of 2013.

Goldman, Sachs & Co. acted as financial advisor to the primary shareholder of
Wexford Science & Technology. Morgan Stanley acted as financial advisor to
BioMed Realty. Stifel acted as financial advisor to Wexford Science &
Technology.

About BioMed Realty Trust

BioMed Realty delivers optimal real estate solutions for biotechnology and
pharmaceutical companies, scientific research institutions, government
agencies and other entities involved in the life science industry. BioMed
Realty owns or has interests in properties comprising approximately 13.2
million rentable square feet. The company's properties are located
predominantly in the major U.S. life science markets of Boston, San Francisco,
Maryland, San Diego, New York/New Jersey, Pennsylvania and Seattle, which have
well-established reputations as centers for scientific research. Additional
information is available at www.biomedrealty.com.

About Wexford Science & Technology

Wexford Science & Technology, LLC is a private real estate investment and
development company that meets the growing and specialized facilities needs of
for-profit and not-for-profit institutions, including universities,
university-related research parks and healthcare systems. Wexford collaborates
with its client institutions to create and build knowledge-based communities,
which are vibrant, mixed-use, amenity-rich environments where innovation
thrives. Wexford owns or has interests in properties comprising approximately
2.5 million rentable square feet. Wexford's objective is to become a long-term
partner with its institutional clients, supporting strategic organizational
growth in significant, value-added ways while strengthening the communities in
which Wexford works.

Forward-Looking Statements

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: the possibility that the
company's merger with Wexford Science & Technology may not occur on the terms
described herein, or at all; failure to manage effectively the company's
growth and expansion into new markets, or to complete or integrate
acquisitions and developments successfully, including the company's merger
with Wexford Science & Technology and related development projects; the
company's ability to meet projected yields on properties, including projected
yields on properties to be acquired in connection with the company's merger
with Wexford Science & Technology; 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, the
use of debt to fund acquisitions, developments and other investments, and the
ability to refinance indebtedness as it comes due; failure to maintain the
company's investment grade credit ratings with the ratings agencies;
reductions in asset valuations and related impairment charges; risks and
uncertainties affecting property development and construction; risks
associated with downturns in foreign, domestic and local economies, changes in
interest rates and foreign currency exchange rates, and volatility in the
securities markets; ownership of properties outside of the United States that
subject the company to different and potentially greater risks than those
associated with the company's domestic operations; risks associated with the
company's investments in loans, including borrower defaults and potential
principal losses; 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.

SOURCE BioMed Realty Trust, Inc.

Website: http://www.biomedrealty.com
Contact: Rick Howe, Senior Director, Corporate Communications, (858) 207 -
5859
 
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