Global investment firm KKR (NYSE: KKR) and leading life science REIT Alexandria Real Estate Equities, Inc. (NYSE: ARE) have announced a $475 million joint venture investment by KKR-advised capital accounts into Alexandria’s Campus Point by Alexandria Megacampus™ in San Diego, California.
Under the terms of the transaction, KKR acquired a 49% noncontrolling equity interest in Alexandria’s Campus Point investment entity, representing approximately 28.5% indirect ownership in the underlying joint venture. Alexandria will continue to oversee the property’s operations and development, maintaining control of the joint venture.
Campus Point spans nearly 2 million square feet adjacent to UC San Diego and is backed by high-profile corporate and institutional tenants, including Novartis, Bristol Myers Squibb, Eli Lilly, Leidos, and UC San Diego, which generate approximately 98% of the campus’s rental revenue.
Key Deal Structure & Strategic Highlights:
- Capital Allocation: The $475 million investment provides Alexandria with flexible, long-term capital to optimize its capital structure, support campus enhancements, and execute its growth plan.
- Operational Control: Alexandria retains majority ownership and operational leadership over the Megacampus.
- Advisors Involved: Eastdil Secured Savills served as financial advisor to Alexandria, with Proskauer acting as legal advisor. Gibson Dunn served as legal advisor to KKR.
“Alexandria has built a premier Megacampus at Campus Point, supported by an exceptional tenant base and long-term contractual cash flows,” said 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,” added Peter Moglia, Chief Executive Officer and Chief Investment Officer of Alexandria Real Estate Equities.
