Health Care Property Investors Buys Slough Estates USA for $2.9 Billion

LONG BEACH, CA. June 04, 2007 - Health Care Property Investors said it will buy Slough Estates USA, a real-estate business focused on the life-sciences industry, from the U.K.'s Segro plc for $2.9 billion, including the assumption of $1.2 billion in debt. Slough's 83 properties include the corporate campuses for Genentech and Amgen. Segro said that although Slough is "an excellent business in its own right," it failed to fit into its long-term strategy because its core business is in European office buildings. Slough also has a committed development pipeline of 500,000 square feet, 86% of which is preleased to investment grade tenants, and a future development pipeline of 3.3 million square feet that it will develop based on demand. Most of its properties are in the San Francisco Bay Area and San Diego County. HCP owns 730 properties in the U.S.; science parks (labs and research centers) are less than 4% of its total portfolio. HCP shares are down 12% YTD.

Source: Business Wire