Key Takeaways
- • KKR-advised capital accounts committed $475 million to a joint venture investment in Alexandria Real Estate Equities' majority ownership interest in Campus Point, a nearly 2 million-square-foot life sciences Megacampus in San Diego.
- • KKR acquired a 49 percent noncontrolling equity interest in Alexandria's Campus Point investment entity, representing approximately 28.5 percent indirect ownership in the underlying joint venture.
- • The capital gives Alexandria flexible, long-term funding to support continued development, leasing and property enhancements at the campus.
- • Campus Point sits in San Diego's University Town Center submarket beside UC San Diego, the Salk Institute and Scripps Research, and its tenant base includes global pharmaceutical, biotechnology and research organizations.
Summary
KKR and Alexandria Real Estate Equities have announced a $475 million joint venture investment by capital accounts advised by KKR in Alexandria's majority ownership interest in Campus Point by Alexandria Megacampus. The asset is a nearly 2 million-square-foot life sciences Megacampus in San Diego.
Under the transaction, KKR has acquired a 49 percent noncontrolling equity interest in Alexandria's Campus Point investment entity. That stake equates to approximately 28.5 percent indirect ownership in the underlying joint venture. Alexandria is retaining its majority position in the asset.
According to the announcement, the investment provides Alexandria with flexible, long-term capital to support continued development, leasing and property enhancements at the campus. The structure allows the REIT to fund its life sciences pipeline without a full sale of the asset.
Campus Point is located in San Diego's University Town Center submarket, adjacent to the University of California San Diego, the Salk Institute and Scripps Research. The campus is home to a roster of leading global pharmaceutical, biotechnology, research organizations and technology companies, and the Megacampus includes tenants Novartis and others. The source text was truncated, so the full tenant list and any additional terms were not available.
Under the transaction, KKR has acquired a 49 percent noncontrolling equity interest in Alexandria's Campus Point investment entity. That stake equates to approximately 28.5 percent indirect ownership in the underlying joint venture. Alexandria is retaining its majority position in the asset.
According to the announcement, the investment provides Alexandria with flexible, long-term capital to support continued development, leasing and property enhancements at the campus. The structure allows the REIT to fund its life sciences pipeline without a full sale of the asset.
Campus Point is located in San Diego's University Town Center submarket, adjacent to the University of California San Diego, the Salk Institute and Scripps Research. The campus is home to a roster of leading global pharmaceutical, biotechnology, research organizations and technology companies, and the Megacampus includes tenants Novartis and others. The source text was truncated, so the full tenant list and any additional terms were not available.
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