Regeneron takes ownership of HQ for $720m after 25 years

After leasing the property for 25 years, Regeneron has agreed to take ownership of its headquarters and buy the Landmark at Eastview facility in New York State with a payment of $720 million to current owners BMR-Landmark at Eastview and BMR-Landmark at Eastview IV, according to a filing to the Securities and Exchange Commission (SEC).

Life science realtor BioMed Realty Trust, of which the current owners are affiliates, describes the Landmark at Eastview site as a "premier multi-tenant biotech, medical and pharmaceutical laboratory"; currently, Regeneron occupies around 80% of the 150-acre site with the rest leased to smaller tenants such as Bayer Healthcare, Progenics Pharmaceuticals and Profectus Biosciences.

Regeneron plans to finance the deal through a lease financing arrangement for the full amount of $720 million with Banc of America Leasing & Capital; the investment banking firm will hold legal ownership of the site for five years, during which Regeneron will lease the property for cheaper rent than current payments. When the five years are up, the biotech will be able to buy the site, extend its lease, or sell it to a third party.

Speaking on behalf of the company, spokeswoman Erin Loosen explained: "This agreement will result in cost savings and also provide Regeneron with operational control of our site and future development plans."

The transaction is due to close in the first quarter of this year.

Matt Fellows