Blackstone is buying a US medical REIT in an $8bn (€7.1bn) deal.
The company said it agreed to buy BioMed Realty Trust for its Real Estate Partners VIII fund.
BioMed’s tenants include life science and biotech companies.
The $8bn transaction, approved by BioMed’s board members, is expected to close early next year.
Nadeem Meghji, co-head of US real estate acquisitions at Blackstone, said BioMed owned an “exceptional collection of office buildings catering to life science tenants” in Boston-Cambridge, San Francisco, San Diego and Seattle.
The company holds an 18.8m sq ft portfolio.
“We believe in the long-term fundamentals of this sector, particularly in locations with top-tier educational and research institutions,” Meghji said.
Alan Gold, chairman, president and chief executive at BioMed Realty, said demand for high-quality, institutional real estate to support the unprecedented growth of the life science industry was at “historic levels”.
“Demand is outpacing supply in all of our core innovation districts,” he said.
“The public markets are not adequately valuing our assets and proven business model. Entering into this transaction with Blackstone fulfills our board of directors’ mission to maximise stockholder value.”