As part of the agreement, BioMed will pay Arena an additional $16 million, upon Arena's agreement to complete certain improvements to the properties. Regarding the fourth property, BioMed will pay $7.9 million to the current owner and have Arena sign a long-term lease.
To complete the sale-leaseback, Arena has agreed to long-term deals -- 20-year terms and two consecutive options to extend for five years -- according to company documents. Officials from Arena and BioMed were unavailable for comment, but information from Arena confirmed that the company has an option to buy back the properties in 10, 15 or 20 years.
Arena's president and CEO, Jack Lief, says in a company filing that the deal improves the firm's financial position and allows it flexibility in future partnerships and allows it "to aggressively advance our clinical and research programs."
The publicly traded Arena is a receptor-based, clinical drug company that works in the fields of diabetes, obesity, cardiovascular, sleep disorders, neurodegeneration, schizophrenia, depression and anxiety. Its stock price closed yesterday at $13.83, up 0.29%.
For science properties REIT BioMed, the move was just the latest in its aggressive buy attitude. Last month the firm formed a joint venture with Prudential Real Estate Investors in order to close on its previously announced acquisition of the former portfolio of Lyme Timber Co. The deal carries a $507-million price tag, minus closing costs and gives BioMed roughly 600,000 sf of life science space and entitlements to another 266,000 sf of developable land in Cambridge, MA's Kendall Square.
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