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Proceeds from the construction loan will be used in part to repay aportion of the joint venture's existing $550 million secured acquisition andinterim loan facility from KeyBank National Association and certain otherlenders and to fund the balance of the anticipated cost to completeconstruction of the project.
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In addition to entering into the new construction loan, the joint venturealso extended the term of the existing secured acquisition and interim loanfacility by one year to April 3, 2009, with no additional changes to thepricing or terms of the facility.
"The construction loan and extension of the existing loan are importantmilestones that further enhance the financial flexibility of the jointventure. We are extremely pleased to obtain financing for this constructionproject prior to pre-leasing given the challenges in the broader financialmarket. Furthermore, we appreciate the continued strong support of our lendingpartners," said Kent Griffin, Chief Financial Officer of BioMed Realty Trust.
Roger Pratt, PREI Senior Portfolio Manager, commented, "We are verypleased to have fully financed the construction costs for the joint venture's650 East Kendall Street property. The success of this financing is a strongtestimony to the quality of the project and the sound sponsorship by BioMedand PREI."
The construction loan initially bears interest at a floating rate equal toreserve adjusted LIBOR plus a spread of 150 basis points. The constructionloan has a maturity date of August 13, 2010 and is secured by the 650 EastKendall Street property and related collateral.
About BioMed Realty Trust
BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focusedon Providing Real Estate to the Life Science Industry(R). The company'stenants primarily include biotechnology and pharmaceutical companies,scientific research institutions, government agencies and other entitiesinvolved in the life science industry. BioMed Realty Trust owns or hasinterests in 68 properties, representing 104 buildings with approximately8.5 million rentable square feet, as well as approximately 1.9 million squarefeet of development in progress. These properties are located predominantly inthe major U.S. life science markets of Boston, San Diego, San Francisco,Seattle, Maryland, Pennsylvania and New York/New Jersey, which havewell-established reputations as centers for scientific research. Additionalinformation is available at http://www.biomedrealty.com.
About PREI
PREI is the real estate investment management business of PrudentialFinancial, Inc. (NYSE: PRU). PREI's specialized operating units offer a broadrange of investment opportunities and investment management services in theUnited States, Europe, Asia, and Latin America. The company's fund managementoperations, located in Parsippany, New Jersey; Atlanta, Georgia; Munich;London; Mexico City; and Singapore, are supported by a network of localoffices throughout the world. As of September 30, 2007, PREI managed$40.7 billion of gross assets ($29.4 billion net) on behalf of more than400 clients and is ranked among the largest real estate investment managers.For more information, visit http://www.prei.com.
This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995 based on currentexpectations, forecasts and assumptions that involve risks and un
