SAN MATEO, California – (BUSINESS WIRE) – Clarion Partners Real Estate Income Fund Inc. (CPREIF) has acquired a 58,935 square foot biopharmaceutical facility on more than three acres at 55 Messina Drive in Braintree, MA. Clarion Partners, LLC (“Clarion Partners”), a leading US real estate investment manager, is one of Franklin Templeton’s specialist investment managers.
The property, which includes six wet laboratories, temperature-controlled rooms, a new water filtration system, and 18.5-inch ceiling heights, is a GMP (Life Science Good Manufacturing Practices) facility and is owned 100% by Zimmer Biomet, a global leader in locomotive apparatus, rents health care.
“This is a great opportunity to acquire a strategically located property with an established tenant in this hot industrial sub-market,” said Onay Payne, Managing Director of Clarion Partners. “22 of the 25 largest biopharmaceutical companies are located in the greater Boston area, and Braintree, where this property is located, is part of the world’s largest cluster of life science and biotech companies.”
GMP laboratories that follow and systematically document compliance with GMP regulations are subject to the US Food & Drug Administration (FDA) to ensure the safety and integrity of drugs. GMP facilities support the life cycle of bioproduction from initial small batch clinical trials to commercial production and cover all aspects of production including materials, premises, equipment, training and personal hygiene of staff.
“We are very excited to have the Clarion team on this acquisition,” said Scott Dragos, executive vice president of CBRE Capital Markets, who brokered the transaction. “There is a significant demand for high quality organic farm land from both tenants and investors, and very little product is available to meet this demand. The property at 55 Messina is a state of the art GMP facility with a long term tenant with solid credit. However, what makes this opportunity so unique is that this facility is already configured for clinical trials as per FDA requirements. ”
Located near I-93 and I-95, the property offers easy access to the greater Boston area, including downtown Boston (13 miles), Cambridge (18 miles) and Waltham (24 miles). Braintree’s Red Line station on the Boston subway system, commonly referred to as the T, is three miles from the property and provides direct access to Cambridge, a hub of life science and biotech companies which is also home to Harvard University and the Massachusetts Institute of Technology (MIT).
About CPREIF
CPREIF is a non-diversified, closed-ended management investment company that continuously offers its common stock. The Fund’s investment manager, Legg Mason Partners Fund Advisor, LLC, is an indirect wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”) and the Fund’s investment sub-advisor, Clarion Partners, is an indirect majority-owned subsidiary of Franklin Resources. In addition, the Fund’s securities sub-advisor, Western Asset Management Company, LLC, is an indirect wholly-owned subsidiary of Franklin Resources. Printouts of the Fund’s full audited financial statements are available free of charge upon request. Further information on CPREIF can be found here.
About Clarion Partners
Clarion Partners has managed real estate on behalf of many of the world’s largest and best-known institutional investors for nearly four decades. Via CPREIF, individual investors can draw on Clarion’s know-how and track record. The individual-facing funds are managed in the same disciplined way as the institutional assets and focus on creating value through excellent execution.
Clarion Partners is headquartered in New York and has strategically located offices in the United States and Europe. With more than $ 56 billion in real estate and debt under management, Clarion Partners offers a broad range of real estate strategies across the risk / reward spectrum to more than 500 institutional investors around the world. Clarion Partners is an independent subsidiary of Franklin Templeton. More information about the company can be found at www.clarionpartners.com.
About Franklin Templeton
Franklin Resources [NYSE:BEN] is a global investment management organization with subsidiaries that operate as Franklin Templeton and serve clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better results through investment management expertise, wealth management and technology solutions. Through its specialized investment managers, the company offers comprehensive capabilities in the areas of equity, fixed income securities, alternatives and customized multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has more than 70 years of investment experience and approximately $ 1.5 trillion in assets under management as of March 31, 2021. For more information, visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.
Investment Risks
The fund is reorganized and has a limited operational history. An investment in the fund involves considerable risk. The Fund is primarily intended for long-term investors and an investment in the Fund should be considered illiquid. Shareholders may not be able to sell their shares in the Fund at all or at a low price. Fixed income securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed income securities decreases. High yield bonds have higher price volatility, illiquidity and the possibility of default. The Fund’s investments have a strong real estate investment focus and are therefore subject to the risks typically associated with real estate, including, but not limited to, local, state, national or international economic conditions. including market disruptions due to regional concerns, political upheaval, sovereign debt crises, and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. The Fund and / or its subsidiaries employ leverage which increases the volatility of investment returns and exposes the Fund to greater losses if an underlying Fund’s investments decline in value. The fund may use derivatives such as options and futures, which can be illiquid, increase losses disproportionately and have a potentially large impact on fund performance.
Liquidity considerations
The Fund should be viewed as a long-term investment as it is inherently illiquid and is only suitable for investors who can accept the risks associated with the limited liquidity of the Fund. The limited liquidity is only made available to the unitholders through the fund’s quarterly repurchase offers for no more than 5% of the fund units outstanding at net asset value. There is no guarantee that these buybacks will take place on schedule or at all. Stocks are not listed on a public exchange and a secondary market is not expected to develop.
Before investing, carefully consider a Fund’s investment objectives, risks, fees and expenses. You can find this and other information in each prospectus or in a summary prospectus, if available, at www.leggmason.com. Please read it carefully.
All investments involve risk, including loss of capital. Past performance is no guarantee of future results. All information, statements or opinions contained herein are general in nature, are not directed to or based on the financial situation or needs of any particular investor, and do not constitute investment advice or forecast future events and should not be construed as such, a guarantee of future events Findings or a recommendation regarding a specific security or investment strategy or type of retirement account. Investors who would like financial advice on the appropriateness of investing in securities or investment strategies should contact their financial professional.
INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | CAN LOSE VALUE
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TN21-030
