Boston Properties Inc. (BXP) announced on Tuesday that it has entered into agreements to sell a 45% stake in two life sciences development properties located in Kendall Square, Cambridge, Massachusetts. The properties have been valued at approximately $1.66 billion, equivalent to $2,050 per square foot.
Joint Ventures and Services
Under the agreement, Boston Properties Inc. will retain a 55% interest in the joint ventures that will be created as a result of this deal. Furthermore, BXP will continue to provide development, property management, and leasing services for these properties.
As part of the deal, Norges Bank Investment Management (NBIM) funded approximately $212.9 million at the closing for its investment in 300 Binney Street. Upon closing of its investment in 290 Binney Street, NBIM’s investment will reduce BXP’s share of estimated future development spend by approximately $533.5 million.
BXP’s stock is currently not active premarket and has experienced a 24% decline year-to-date. In contrast, the S&P 500 (SPX) has seen a 15% increase during the same period.