BioMed's Wexford Buys NC Asset - Analyst Blog


BioMed Realty Trust, Inc. 's ( BMR ) subsidiary, Wexford Science & Technology, disclosed the buyout of the Chesterfield Building site in downtown Durham, N.C. The company shelled out about $7.5 million for this acquisition, which came as part of BioMed's efforts to expand Wexford's footprint in North Carolina.

With this transaction, BioMed's portfolio base in North Carolina rose to over 1.2 million square feet. It would, in particular, help in expanding the company's Wake Forest Innovation Quarter project and other properties in the Research Triangle area.

The Chesterfield building, which was once part of the complex of Liggett & Myers Tobacco Company (presently known as Liggett Group) of Vector Group Ltd. ( VGR ), is one of the last remaining yet-to-be redeveloped warehouses of downtown Durham. The property that conducts research work worth more than $2 billion every year is located near four renowned universities - North Carolina Central University, University of North Carolina at Chapel Hill, North Carolina State University and Duke University - of the region.

We view the acquisition as a strategic fit for this real estate investment trust (REIT), as we view the Durham market as an ideal platform for pursuing the Wexford Science & Technology's expansion plans. Moreover, the opportunistic acquisitions would help the company enhance its portfolio quality, which in turn would be accretive to its earnings going forward.

Notably, Wexford Science & Technology possesses expertise in universities and related research parks; and healthcare systems facilities. In Jun 2013, BioMed Realty merged with Wexford Science & Technology, LLC to strengthen its position as the leading real estate provider to the life science industry.

BioMed Realty focuses on providing real estate solutions to the life science industry in the U.S. Its tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies, and other entities involved in the life science industry. Currently, BioMed Realty has interests in properties comprising approximately 16.3 million square feet of rentable space.

BioMed Realty presently carries a Zacks Rank #3 (Hold). However, some better-ranked REIT- Equity Trust - Other stocks include National Health Investors Inc. ( NHI ) and W. P. Carey Inc. ( WPC ). Both stocks carry a Zacks Rank #1 (Strong Buy).

BIOMED RLTY TR (BMR): Free Stock Analysis Report

NATL HEALTH INV (NHI): Free Stock Analysis Report

WP CAREY INC (WPC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BMR , NHI , VGR , WPC

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