Trust breaks ground on $145m lab and office complex.

BioMed Realty Trust, Inc. has embarked on a major expansion at The Landmark at Eastview, the largest privately owned multi-tenant technology park in New York State. Ground was broken for a world-class laboratory and office complex that will be a new corporate headquarters and research development facility for Regeneron Pharmaceuticals, Inc.

Regeneron will lease a majority of the new 360,000 s/f, $145 million facility, with the remaining state-of-the-art laboratory and office space available for future tenants.

Senior management of BioMed Realty Trust, owner of The Landmark at Eastview, joined with Regeneron executives and state, county and local political leaders for a groundbreaking ceremony at the 275-acre campus. The new complex is the first speculative lab-ready space to be built in the Hudson Valley in a number of years, and solidifies The Landmark at Eastview as the region's premier life sciences campus.

"We are pleased to begin construction of this exciting and important expansion at The Landmark at Eastview positioning BioMed Realty Trust as the leading provider of real estate to the life science industry in the New York area. We see tremendous potential for this property in attracting new biomedical companies to the region, while accommodating organic growth of our existing tenants such as Regeneron," said Alan D. Gold, president and CEO of BioMed Realty Trust.

The groundbreaking event represents a major corporate commitment to Westchester County and New York State by Regeneron, a biopharmaceutical company that is developing drug candidates for the treatment of cancer, eye and other diseases. Regeneron employs more than 450 people. BioMed Realty Trust is constructing three interconnected laboratory and office buildings totaling approximately 360,000 square feet of laboratory and office space. The three buildings are being built on a 66-acre site adjacent to the existing 777 and 765 Saw Mill River Road buildings. One of the new buildings--735 Saw Mill River Road--will be connected to the 777 building.

Regeneron has signed a long-term lease for approximately 194,000 square feet of space in two of the three new buildings. Regeneron employees currently working at multiple locations at the park will be consolidated into the two new buildings. Following Regeneron's relocation to the new buildings, BioMed Realty Trust will redevelop and lease the vacated space, excluding approximately 27,000 square feet that Regeneron will retain.

Designed by the architectural firm of Tsoi/Kobus & Associates of Cambridge, MA, the new buildings will feature an open and flexible design as well as incorporate the latest energy efficient technologies. William A. Berry & Son, Inc. of Danvers, MA. is the general contractor for the project.

Construction of the core and shell of the three buildings is expected to be completed by the summer of 2008. Regeneron's office and lab space is expected to be finished and ready of occupancy by early 2009.

For its commitment to New York State and Westchester County, Regeneron has received a $4 million grant from Empire State Development Corporation as well as $3.5 million in property tax abatements and $1.5 million in sales tax abatements from the Westchester County Industrial Development Agency.

Westchester County Executive Andrew Spano pointed to the expansion as a sign of continued confidence in Westchester's biomedical community. "An investment of this scale and scope just confirms that Westchester is still a hot location for scientific research and development," Mr. Spano said.

"Regeneron has been a key player in the county for years, and not only do they want to stay--they're ready to expand. BioMed's commitment to build more space will allow other companies to be able to do the same," he added.

Empire State Development/Downstate Chairman Patrick Foye said, "ESD is pleased to be a part of Regeneron's continued success and investment in Westchester. Today's groundbreaking is a significant milestone for both the company and New York State.

"With Regeneron and others leading by example, New York has become a prime location for specialty and high-tech businesses."