Friday, July 8, 2016

Company behind UCity Square to be sold in $1.5B deal



Wexford Science & Technology, the developer behind UCity Square and 3737 Market St., is being acquired in a deal valued at $1.5 billion in cash.

Ventas Inc. (NYSE: VTR) is buying substantially all of the assets of the Baltimore-based real estate investment and development firm from affiliates of Blackstone Real Estate Partners VIII L.P.


Ventas will also assume $33 million of liabilities. Wexford has a total portfolio of 23 properties that contain 4.1 million square feet.

Wexford was acquired in a $640 million deal by San Diego-based BioMed Realty Trust Inc. in 2013. Blackstone, the private equity giant, bought BioMed last October in a deal valued at $8 billion. Ventas said Wexford will be independently operated by its existing management team.

Wexford has grown its presence locally over the years.

The University City Science Center and Wexford Science + Technology formed a partnership to construct up to 4 million square feet in 10 new buildings at the growing innovation hub in West Philadelphia.

The building it owns at 3737 Market is leased to the University of Pennsylvania Health System.

In addition, Wexford owns the former University City High School property in a partnership with Drexel University.

Typically, these sorts of mergers are seamless and don’t have any noticeable affect on a property or development pipeline.

Ventas' focus is similar to Wexford. It owns properties leased by universities, academic medical centers and research companies. The transaction is expected to close in the fourth quarter.

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