Alexandria Real Estate Equities has announced that it will not be moving forward with its development plans for a site in Greater Boston. The REIT stated in its third-quarter results that the two properties, identified as industrial and self-storage, will instead be sold during Q4.
According to Alexandria, the initial intention was to entitle the site as a life science campus and eventually develop life science properties after demolishing the existing non-laboratory buildings. However, due to changes in the macroeconomic environment and upon reevaluating their financial outlook and alignment with their mega campus strategy, they have decided not to proceed with this project.
The Pasadena-based owner/developer has recorded an impairment charge of $90.8 million on these properties in order to reduce their carrying amounts. Currently owning 75 properties in Boston’s life science market where vacancies have been on the rise, Alexandria is making strategic decisions for future growth opportunities.
This decision by Alexandria highlights how external factors can impact real estate development plans even when initially intended otherwise.
