REIT Firm Boston Properties Divests 45% Stake In Two Massachusetts Properties For $1.66B

Boston Properties Inc BXP inked a deal with Norges Bank Investment Management to divest its 45% stake in two life sciences development properties at Kendall Square, Cambridge (Massachusetts) for a gross value of around $1.66 billion (or $2,050 per square foot).

Norges Bank Investment Management invested $746.4 million to form joint ventures to own both properties.

BXP will retain 55% interest in the properties, which span 810,000 square feet and are 100% pre-leased and will provide development, property management, and leasing services for the ventures. 

NBIM funded about $212.9 million at closing for its investment in 300 Binney Street, and, upon closing of its investment in 290 Binney Street, NBIM's investment will reduce BXP's share of estimated future development spend over time by around $533.5 million.

This month, BXP reported Q3 FFO per share of $1.86, down from $1.91 the prior year, and sales of $824.28 million beat the consensus of $810.45 million. 

Price Action: BXP shares are trading higher by 10.6% at $56.67 on the last check Tuesday.