$746.4 Million Investment by Norges Bank Investment Management to Form Joint Ventures To Own Two Properties Totaling Approximately 810,000 Square Feet
BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, today announced that it has entered into agreements to sell a 45% interest in two life sciences development properties located in Kendall Square in Cambridge, Massachusetts, to Norges Bank Investment Management at a gross valuation of approximately $1.66 billion or $2,050 per square foot. The properties – 290 Binney Street and 300 Binney Street – total 810,000 square feet and are each 100% pre-leased. BXP will retain a 55% interest in the joint ventures and will provide development, property management, and leasing services for the ventures. NBIM funded approximately $212.9 million at closing for its investment in 300 Binney Street and, upon closing of its investment in 290 Binney Street, NBIM’s investment will reduce BXP’s share of estimated future development spend over time by approximately $533.5 million.
“We are delighted to deepen our longstanding partnership with Norges Bank Investment Management,” said Owen Thomas, Chairman & CEO, BXP. “Their meaningful investment in BXP’s newest life sciences development in the heart of Kendall Square demonstrates the value placed by investors on well located, well leased premier workplaces with strong stewardship.”
“We are very pleased to grow our portfolio in Greater Boston,” said Mie Holstad, Chief Real Assets Officer at Norges Bank Investment Management. “The investment aligns with our long-term strategy, and we are delighted to strengthen our partnership with BXP in a sector where we have high conviction.”
“BXP’s newest joint venture with NBIM solidifies what is already a key strategic partnership,” said Cole Pinney, Vice President, Joint Venture Client Relationships, BXP. “We look forward to continued collaboration between our organizations.”
290 Binney Street is a 16-story, 570,000 square foot laboratory/life sciences property currently under construction and 100% pre-leased to AstraZeneca, with initial occupancy expected in April 2026.
300 Binney Street is a six-story property currently under redevelopment into 240,000 square feet of laboratory/life sciences space and 100% pre-leased to the Broad Institute, with projected occupancy expected in January 2025.
About BXP Life Sciences
BXP Life Sciences consists of an existing portfolio of approximately 3.9 million square feet focused on the specific needs of the life sciences industry, primarily in the leading innovation markets of Boston, Cambridge, and Waltham/Lexington, Massachusetts, Montgomery County, Maryland, and South San Francisco and Los Angeles, California. In addition, BXP has approximately 5.8 million square feet of life sciences-focused development opportunities, as well as approximately 1.6 million square feet of current lab developments and redevelopments in process that are expected to deliver in the next three years.
BXP (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT), with more than 50 years of experience developing, owning, managing, and acquiring exceptional properties in dynamic gateway markets. As of September 30, 2023, including properties owned by unconsolidated joint ventures, BXP’s portfolio totaled 53.5 million square feet and 190 properties, including 11 properties under construction/redevelopment. For more information, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.
This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “will,” “expects,” “intends” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, trends, uncertainties and other factors which are, in some cases, beyond BXP’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, BXP’s ability to satisfy the closing conditions of the second joint venture transaction on the terms currently contemplated or at all, BXP’s ability to complete the development and redevelopment projects referenced above on time, within budget or at all, and other risks and uncertainties detailed from time to time in BXP’s filings with the SEC. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.