Jan 22, 2002
The signing of a lease agreement for a 280,000 sq.ft. R&D facility to health science company Tularik, completes the pre-letting of Slough’s entire Oyster Point research park at South San Francisco, California.
Granted planning consent in November 2000 for 577,000sq.ft. in seven buildings, the first four buildings, let to Raven Biotechnologies, EOS and Rigel, are under construction and have occupancy dates between October 2002 and January 2003. The three buildings to be built for Tularik will have occupancy dates between May 2003 and not later than November 2005.
Aggregate initial rents for Oyster Point will amount to $31 million and total development costs will amount to $235 million. All the leases are for 15 years with renewal options and benefit from annual increases in rent of 3 to 4 per cent.
At Slough’s Torrey Pines Science Centre in San Diego the campus being built for Pfizer is to be extended to a total of 755,000 sq.ft. by the inclusion into the masterlease of the last available development site as well as a 49,000 sq.ft. office building recently completed to shell and core. To date 336,000 sq.ft. is occupied, with the balance being built and occupied in stages through to March 2004. The aggregated initial rent roll on the total campus will approximate to $22 million and will have cost $185 million by completion.
A further building of 83,000 sq.ft. which completed construction this month has been let to Syrrx. The entire development capacity of Slough’s land holding at Torrey Pines, San Diego’s most favoured location for health science research, is now under lease.
To complement the Science Centre, Slough recently acquired the Torrey Pines Science Park, comprising 295,000 sq.ft. in four buildings developed between 1977 and 1983. At a cost of $71 million and at an initial yield of 8.5 per cent, the property is reversionary with possibilities to add value. It is occupied primarily by health science companies including Becton Dickenson, SkyPharma, Scripps and Pfizer.
With both Oyster Point, South San Francisco and Torrey Pines, San Diego fully committed to pre-let development, Slough’s biggest remaining Californian development project is at East Grand, South San Francisco, which has been submitted for planning consent. Acquired in 2000 for $35 million, application has been made for the development of some 780,000 sq.ft. of R&D space at the edge of San Francisco Bay and adjacent to the Genentec research campus.