Blackstone Group has agreed to acquire a portfolio of life-sciences buildings primarily in Cambridge, MA from Brookfield Asset Management for $3.45 billion, according to the Wall Street Journal. The acquisition is the latest sign of growing investor interest in biotech lab space and life-sciences real estate during the pandemic.
- Dig Deeper: The portfolio of lab buildings consists of 2.3 million SF of space, and most of it is on a 30-acre campus adjacent to MIT. Over 95% of the portfolio is leased thanks to strong demand from pharmaceutical and other life-sciences companies that want to be close to the school’s students, faculty, and research activities, the Journal noted.
- Worth Noting: Blackstone’s life-sciences bet has risk, as strong demand for life-sciences space this year has driven up prices to near peak levels. There is also the danger of new supply saturating the market. The firm is also close to acquiring another two life-science buildings in the Boston-Cambridge market for $1 billion. [WSJ]