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Ventas stakes new life-science claim; Brookfield seals Rouse deal

Sizeabledeals in the life science arena punctuated an abbreviated trading week duringwhich a health care REIT detailed the results of its IPO and theBrookfield-Rouse deal closed.

Quality of life

said Tuesday that itwill enter the university-affiliated life science space by the majority of Wexford Science& Technology LLC's life science and medical real estate from affiliates ofBlackstone Group LP'sBlackstone Real Estate Partners VIII LP for $1.5 billion in cash.

Thehealth care REIT launched a 9.0 million-share common to finance the deal, which isexpected to close in the fourth quarter. The Wexford portfoliocomprises 4.5 million square feet across 25 class A assets leased touniversities and research companies.

EvercoreISI analysts Steve Sakwa and Sheila McGrath said in a July 6 note that theyview Ventas' move into the life science arena, and the timing of it, favorably,and described the deal's price as "attractive." They also like thecompany's funding plan, given the premium at which its stock is trading. Thetwo rated the stock at "hold."

Sakwaand McGrath noted that the Ventas-Wexford play represents a "sharplydifferent" business model than that of Alexandria Real Estate Equities Inc., which they said "focuseson the major life science cluster markets where demand is deeper frompharmaceutical tenants, biotech, institutional and technology tenants."

Separately,Alexandria Real Estate on July 6 said it plans to sell 6.5 million commonshares to fund its $725 million acquisitionof the One Kendall Square science and technology campus in the East Cambridgesubmarket of Greater Boston.

The company also signed joint-venture agreements with TIAAGlobal Asset Management to sell its 45% interests in two San Diego properties forestimated gross proceeds of $256 million and updated its 2016 guidance ranges.

MOB squad

onTuesday said it closed the secondtranche of its deal with Catholic Health Initiatives with theacquisition, for $305 million, of 20 medical office facilities. The propertiesinclude roughly 1.4 million rentable square feet.

The company expects to acquire four more medical officeproperties from Catholic Health early in the third quarter.

Newborn

said in aJuly 5 filing that it raised gross proceeds of about $130.4 million from itsIPO, having soldroughly 13.0 million shares for $10.00 apiece. The offering closed July 1.

Amember of the company's board, Conn Flanigan, his seat, effective as ofthe IPO's close on July 1, but will continue to serve as secretary and generalcounsel, the company said in a July 7 filing.

Come together

BrookfieldAsset Management Inc. on July 6 said it closed its $2.8 billionpurchase of , and Rouse'scommon stock was delisted.

And in an effort to grow its mid-Atlantic capital marketsbusiness, Jones Lang LaSalle Inc.acquired the ChevyChase, Md.-based boutique investment sales, equity and debt advisory firm SageCapital Advisors LLC.

In California, BostonProperties Inc. closed its $511.1 million , or roughly $503.6 millionnet of adjustments, of a 49.8% stake in a joint venture that owns fee interestsin the Colorado Center in Santa Monica, Calif., according to a July 6 release.Blackstone Group sold the stake.

It's a wrap

Digital RealtyTrust Inc. said July 5 that it closed its purchase, for $874 million, of eight Europeandata centers from Equinix Inc.The European Commission had required Equinix to sell the assets as part of itsacquisition of Telecity Group Plc.

Equinix meanwhile exercised an option to acquire DigitalRealty's facility in St. Denis, Paris, and will pay $211 million for theproperty.

Family portrait

Reis Inc. posted second-quarter fundamentals this week forthe office,multifamily andretail subsectors.The data showed early signs of a slowdown in office, a potentially troublingamount of new apartment construction, and a performance split acrossproperty-type and property-quality lines in retail.

Parting ways

GramercyProperty Trust Inc. said Tuesday that it joint-venture partnerDuke Realty Corp.'sinterests in five industrial and two office properties. When Gramercy buys DukeRealty's interest in a last JV property, in Phoenix, in a deal expected toclose in the third quarter, the venture will be dissolved.

Gramercy picked up an 80% interest in the venture via itsmerger with Chambers StreetProperties.

Sign here

Competition authorities in Saudi Arabia and Mexicoauthorized theMarriott International Inc.-merger. China still has to approve the deal.

Now featured

: Suspensions of trading in morethan half a dozen U.K. real estate funds have brought long-standing concernsabout liquidity mismatches into focus.

:SNL Financial on July 8 released second-quarter 2016 M&A league tables forits covered North American sectors.

SNL Q2'16Capital Markets League Tables: SNL Financial on July 8 releasedsecond-quarter 2016 capital markets league tables for its covered NorthAmerican sectors.

: The purchasegives the REIT a platform from which to launch investments in a new propertytype, observers said.

: Single family and data center REITs were amongtop performers in the second quarter, while the self-storage and hotel sectorswere among the quarter's bottom performers.

Recurring reports

Bestof: Most read,Editors' picks

TheProperty Ledger: Prologis wrapsup 16 US, European projects; Gramercy buys 4 assets for $60.4M