Alexandria Fully Leases New Built-to-Suit Facility To Autolus
Zacks Investment Research | Jan 15, 2019 09:05PM ET
Alexandria Real Estate Equities, Inc. (NYSE:ARE) has entered into an agreement with Autolus Therapeutics PLC (NASDAQ:AUTL) to construct and develop a build-to-suit project in Rockville, MD.
The facility, spanning 85,000 square feet of space, will be situated in the Shady Grove Life Sciences Center. It will also serve as Autolus’ first commercial-scale manufacturing site.
Specifically, the clinical-stage biopharmaceutical company that develops next-generation programmed T cell therapies has signed a long-term lease to occupy the entire building. It is expected to be ready for occupancy in 2021.
The property will also serve as the company’s U.S headquarter, housing research and development, commercial as well as corporate units. Further, it is projected to have an annual production capacity of 5,000 T cell therapies.
Per Autolus management, the facility will enable it to provide large-scale and economical advanced T cell therapies to patients. For Alexandria, the long-term lease and full occupancy reflects the strength of this property. In addition, it is anticipated to boost leasing and occupancy level for the company.
Notably, university-based life-science real estate is a new zone of investment which has grabbed attention. Increasing longevity of the aging U.S. population, along with biopharma drug development growth opportunities, has spurred demand for institutional life-science and medical-market properties.
Hence, focus on collaborative life-science and technology campuses will offer Alexandria the prospect to capitalize on the growing healthcare-driven research and development, supported by top-tier research universities.
Also, the company’s existing active development and redevelopment pipeline is significant. In fact, the company has 2.6 million RSF targeted for delivery by 2019. However, an extensive development pipeline increases operational risks, and makes the company vulnerable to rising construction costs and lease-up concerns.
Moreover, shares of this Zacks Rank #3 (Hold) company have inched up 1.9%, outperforming its Zacks Investment Research
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