NEW YORK CITY and SAN DIEGO—Jonathan Gray's prediction that more REITs would be taken private came true as his company has now done just that. The global head of real estate at the Blackstone Group made his observation at an industry conference this past Thursday, one week before Blackstone announced that it would acquire BioMed Realty Trust for approximately $8 billion including the assumption of debt.

In a joint announcement Thursday morning, BioMed said its board had unanimously approved the all-cash agreement with Blackstone Real Estate Partners VIII. At $23.75 per share, the deal represents a 24% premium over the healthcare REIT's closing price on Sept. 22, when rumors of a sale began to surface.

“We believe in the long-term fundamentals of this sector, particularly in locations with top-tier educational and research institutions,” says Nadeem Meghji, co-head of US real estate acquisitions for Blackstone. At San Diego-based BioMed, chairman, president and CEO Alan Gold says that while demand continues to outpace supply in all of his company's core markets, “We believe that the public markets are not adequately valuing our assets and proven business model. Entering into this transaction with Blackstone fulfills our board of directors' mission to maximize stockholder value.”