Alexandria Real Estate Equities, a REIT focused on life sciences, has announced that it will be extending its ground lease at Technology Square in Cambridge through the end of 2088. The company initially paid $600 million to an MIT affiliate in 2006 for this ground-lease interest, which was set to expire on January 1st, 2065.
Under the amended agreement, Alexandria will prepay its entire rent obligation for the extended lease term in two equal installments during Q4 of 2024 and Q1 of 2025. This amount will then be spread out evenly over the remaining lease term from July 2024 until December of2088.
According to Alexandria’s recent quarterly report, Technology Square is a crucial part of their portfolio as it serves as a major hub within the global life science community located in Cambridge. It also houses key long-term tenants such as Novartis AG and GlaxoSmithKline plc along with prestigious institutions like Massachusetts Institute of Technology and Mass General Brigham.
The extension secured by Alexandria through Decemberof2088 significantly increases their investment value at this important mega campus location.”
