KKR has made a $475 million joint venture investment in Alexandria Real Estate Equities’ majority ownership interest in Campus Point by Alexandria Megacampus, a nearly 2 million-square-foot life science campus in San Diego.
Capital accounts advised by KKR acquired a 49% noncontrolling equity interest in Alexandria’s Campus Point investment entity. The investment represents approximately 28.5% indirect ownership in the underlying property joint venture.
Alexandria will retain control of the joint venture and continue overseeing operations and development at the campus.
The transaction provides Alexandria with long-term capital that can be used for continued development, leasing activities, and property improvements at Campus Point.
Located in San Diego’s University Town Center submarket, Campus Point sits near the University of California San Diego, the Salk Institute, and Scripps Research.
Its tenant roster includes Novartis, Bristol Myers Squibb, Eli Lilly, Leidos, and UC San Diego.
Alexandria said long-term leases with corporate and institutional tenants account for approximately 98% of Campus Point’s rental revenue, providing contractual cash flows that support the investment.
For Alexandria, the partnership is part of its effort to optimize its capital structure while continuing to fund investment across its portfolio.
KKR is gaining exposure to a large-scale life science real estate campus in one of the country’s established biotechnology and research markets while partnering with Alexandria, a major owner, operator, and developer of life science and advanced technology properties.
Eastdil Secured Savills served as financial advisor to Alexandria, while Proskauer served as its legal advisor. Gibson Dunn advised KKR.
KEY QUOTES:
“Alexandria has built a premier Megacampus at Campus Point, supported by an exceptional tenant base and long-term contractual cash flows. We are excited to collaborate with their team to support its continued development and drive long-term value.”
Sam Caven, Co-Head Of Acquisitions, Americas At KKR
“This transaction marks an important step in our efforts to optimize our capital structure and unlock value across our portfolio. Our strategic partnership with KKR demonstrates the attractiveness of our high-quality assets to leading institutional investors and provides a flexible, long-term source of capital to support our continued investment in our Campus Point Megacampus.”
Peter Moglia, CEO And Chief Investment Officer Of Alexandria Real Estate Equities
