Courtesy of Alexandria Realty Stocks
Alexandria Real Estate Equity Chairman Joel Marcus
Life sciences development giant Alexandria Real Estate Equities has exited a 600,000 SF development project in California, suffering a $30 million loss in the process, the company said in a regulatory filing.
A real estate investment trust based in Pasadena, California submitted a notice This means the company has pulled out of the project because it no longer makes economic sense to develop the land it acquired last year. It didn’t specify which was which, other than to say it was in “one of the company’s existing submarkets in California.”
“Since the company’s initial investment, the macroeconomic environment has deteriorated, adversely affecting the financial prospects of this project,” Filing said. “The company concluded that under generally accepted accounting principles, it would require a property impairment charge of approximately $30 million to write off its entire investment in the project.”
Listed REIT stock prices have been affected by the market-wide decline this year. Retreat in biotechnology fundingThe stock closed Wednesday at $153.40, down 30% since the beginning of the year.
Joel Marcus, Executive Founder and Executive Chairman of Alexandria, said: Bissnow by email on Wednesday.
Alexandria is heavily committed to mixed-use investment themes, with several multi-million-square-foot development projects in the San Francisco Bay and San Diego area works mega campus It combines a life sciences facility with other types of facilities such as hotels and retail stores.
Alexandria had two CEOs until July 31st. Co-CEO Stephen Richardson Retires Peter Moglia became the sole Chief Executive Officer. According to the latest quarterly earnings report, the short-term development pipeline he had was 8M SF.
Jay Rickey contributed reporting for this article.