Alexandria Real Estate Equities, a REIT specializing in life sciences properties, has announced that it will be extending its ground lease at Technology Square in Cambridge until the end of 2088. The initial lease was acquired from an MIT affiliate for $600 million in 2006 and was set to expire on January 1, 2065.
Under the terms of the amendment to the ground lease agreement, Alexandria will make two equal payments during Q4 of 2024 and Q1 of 2025 to prepay its rent obligation for the extended term. This amount will then be spread out evenly over the remaining years until December 2088.
According to Alexandria’s second quarter results report, Technology Square is a crucial part of their portfolio as it serves as a major hub within Cambridge’s thriving life science ecosystem. It is home to key long-term tenants such as Novartis AG, GlaxoSmithKline plc., Massachusetts Institute of Technology (MIT), and Mass General Brigham. By securing this ground lease through December 2088, Alexandria believes that they have significantly increased their investment value in this important mega campus.
In summary: Life sciences-focused REIT Alexandria Real Estate Equities has paid $270 million to extend its ground lease at Cambridge’s Technology Square until December
2088. This strategic move secures their long-term presence within one
of Greater Boston’s top life science hubs and adds significant value
to their investment portfolio.
