Blackstone Acquires Lab Buildings for $3.46 Billion

Blackstone’s Life Science Portfolio Grows

Blackstone Group (BX) has ramped up its presence in the life sciences real estate market with the acquisition of a $3.45 billion portfolio of biotechnology lab buildings. Even before the COVID-19 pandemic began, Blackstone was one of the world’s top investors in life science buildings. Now the company, and others, are even more focused on the industry.

In the fall Blackstone recapitalized BioMed Realty, the biggest private holder of life sciences real estate in the US, for $14.6 billion. Blackstone is also in the process of purchasing two more life sciences buildings in the Boston area for $1 billion, according to people familiar with the matter.

Weighing the Risks of Investing in Life Sciences Real Estate

While the pandemic has battered demand for commercial real estate, office space, and other sectors of the real estate industry, demand for lab space has soared. Many office buildings have sat vacant while employees work from home during the pandemic. Meanwhile, most lab workers need to come in to work each day because their jobs require specific equipment, as well as specialized ventilation and other safety measures.

Still, some analysts suspect that prices for life science real estate may be nearing their peak. It is also possible that new buildings being constructed will saturate the market. Blackstone’s strategy is to invest heavily in markets like Cambridge where it is challenging to build new spaces and where there is a lot of demand for biotech space.

In addition to its life sciences real estate holdings, Blackstone has also invested in biotech companies themselves. In July the firm raised $5 billion in a private fund for life sciences investments. In August, Blackstone invested $275 million in CryoPort (CYRX), a company that specializes in temperature-controlled logistics.

Blackstone Eyes Other Growth Trends

Blackstone has $341 billion in assets under management and is among the world’s largest real estate investors. While the company has been investing heavily in life science properties, it is also looking at other trends in real estate demand.

Blackstone sees a bright future for industrial properties that can be used as distribution centers since demand for ecommerce is climbing and shows no signs of slowing down. Blackstone is also investing in studio spaces and offices for video production, as streaming services like Netflix (NFLX) and Disney+ (DIS) rush to fill demand for new content.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender