Boston Properties (BXP) has agreed 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.
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