Alexandria Real Estate Equities, Inc. Announces Significant Early Renewal and 10-Year Lease Extension With Longstanding Credit Tenant Takeda at the Alexandria Center at Kendall Square Mega Campus in Cambridge
PASADENA, Calif., March 4, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative life science mega campuses in AAA innovation cluster locations, today announced that an affiliate of Takeda Pharmaceutical Company Limited, a top 20 global biopharmaceutical company and longstanding credit tenant, has executed a 10-year lease extension through March 31, 2040 with strong rental rate increases for 222,925 RSF at 75/125 Binney Street on the Alexandria Center® at Kendall Square mega campus in the Cambridge submarket. Takeda's research and development site is a key component of its global R&D center in Greater Boston, which is focused on advancing highly innovative medicines across its four core therapeutic areas: oncology, rare diseases, neuroscience and gastroenterology. This significant early renewal demonstrates Takeda's long-term commitment to the Alexandria Center® at Kendall Square mega campus and importantly highlights the essential nature of Alexandria's Labspace® infrastructure, which the patient-focused, R&D-driven pharmaceutical company relies on to house and help safeguard its highly valuable, mission-critical scientific research and equipment.
Alexandria entered the Cambridge submarket in 1999 and strategically aggregated an irreplicable footprint that currently consists of over 5.4 million RSF in operation across three premier mega campuses — Alexandria Technology Square®, the Alexandria Center® at One Kendall Square and the Alexandria Center® at Kendall Square. These mega campuses are ideally located in the epicenter of Cambridge's Kendall Square, widely known as "the most innovative square mile on the planet," which boasts a dense concentration of cutting-edge and very diversified life science companies, leading universities and renowned research institutions, as well as the deepest life science talent pool in the nation. With 2.8 million RSF of operating properties and approximately 216,000 RSF in future development opportunities as of December 31, 2023, the Alexandria Center® at Kendall Square mega campus has been purposefully positioned to meet the immediate need for space and provide a path for future growth for some of the world's most innovative life science companies, such as Takeda.
Alexandria provides Takeda with essential, integrated laboratory and adjacent nontechnical infrastructure to enable the company's efforts to discover, develop and deliver life-changing therapies for patients worldwide and recruit and retain top life science talent. As part of the lease extension at the LEED Gold certified research facility, Alexandria and Takeda will collaborate to enhance the environmental performance and sustainability attributes of the building through a variety of strategic efforts, including promoting occupant health and wellness, prioritizing energy efficiency and reducing water usage.
Alexandria completed the development of 75/125 Binney Street in 2015 and successfully monetized the property in 2019 through a 60% partial interest sale to an institutional investor for $438 million, or $1,880 per RSF. The partial interest sale represented $202.2 million in excess of book value and a 4.3% cash capitalization rate, supporting the company's objective to provide long-term value for its stockholders.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative life science mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. Alexandria also provides strategic capital to transformative life science and agrifoodtech companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value. For more information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the impact of Alexandria's facilities on the advancement of medicines and treatments. These forward-looking statements are based on Alexandria's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by Alexandria's forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and Alexandria assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in Alexandria's forward-looking statements, and risks and uncertainties to Alexandria's business in general, please refer to Alexandria's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.
CONTACT: Joel S. Marcus, Executive Chairman & Founder, (626) 578-9693, [email protected]
SOURCE Alexandria Real Estate Equities, Inc.
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