SAN DIEGO, Jan. 18, 2005 (PRIMEZONE) -- BioMed Realty Trust, Inc. (NYSE:BMR) today announced it has leased approximately 55,000 rentable square feet of vacant space in phase two of its Industrial Road property, located south of San Francisco, to Nuvelo, Inc. (Nasdaq:NUVO) under a seven-year, triple-net lease. Annualized rent under the lease, which is expected to commence in September 2005, will be approximately $1.6 million, subject to fixed future annual increases equal to approximately three percent of base rent.
Nektar Therapeutics (Nasdaq:NKTR), an existing tenant at the property, had leased approximately 46,000 square feet of this space until August 2007, in addition to approximately 80,000 square feet of space in phase one of the property until October 2016. BioMed agreed to terminate Nektar's lease of its phase two space, which it had never occupied, in exchange for termination payments, including reimbursement of brokers' fees, totaling approximately $3.5 million. The termination payments will be paid by Nektar in monthly installments through August 2007. Nuvelo is also leasing an additional 10,000 square feet of space in phase two of the building.
"The leasing of this space underscores the strength of the Bay Area's life science industry and further demonstrates the positive leasing absorption for laboratory space in this market," said Alan D. Gold, president and chief executive officer of BioMed Realty Trust.
Nuvelo is engaged in the discovery, development and commercialization of life improving therapeutics for the treatment of human disease. Nuvelo's lead product candidate, alfimeprase, recently completed two Phase 2 trials in acute peripheral arterial occlusion and catheter occlusion. Additional programs include cardiovascular product candidates ARC183 and rNAPc2 and drug discovery focused on antibody targets and secreted proteins.
About BioMed Realty Trust
BioMed Realty Trust, Inc. is a real estate investment trust focused on acquiring, owning, leasing, managing and selectively developing laboratory and office space for lease to life science tenants. Tenants include biotechnology and pharmaceutical companies, scientific research institutions, government agencies, physician groups and other entities involved in the life science industry. The company targets properties located in markets with established reputations as centers for scientific research, including San Diego, San Francisco, Seattle, Maryland, Pennsylvania, New York/New Jersey and Boston. Additional information is available at www.biomedrealty.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the life science industry or the California region; risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; failure to manage effectively the Company's growth and expansion into new markets, or to complete or integrate acquisitions successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; potential liability for uninsured losses and environmental contamination; risks associated with the Company's potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the Company's dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.