Health Care REIT, Forest City form joint venture over Cambridge, Mass., project

Health Care REIT, Forest City form joint venture

Health Care REIT Inc. and Forest City Enterprises Inc. said Tuesday they have formed a joint venture to buy a $668 million life sciences campus in University Park in Cambridge, Mass.

The companies said Health Care REIT will acquire a 49 percent stake in Forest City’s seven life sciences buildings located next to the Massachusetts Institute of Technology (MIT).

Health Care REIT will invest $170 million, and the joint venture will assume $320 million in secured debt on the buildings, which are 100 percent leased, the companies said in a statement.

A first-stage closing announced Monday included six of the buildings valued at $610 million. The companies expect a second-quarter closing for the seventh building, valued at $58 million, depending on third-party consents.

University Park, a 27-acre mixed-use campus, includes a hotel, residential units, a grocery store, restaurants and retail space, in addition to 10 life sciences buildings.

Health Care REIT shares fell 46 cents to close at $41.54, while Forest City Enterprises stock rose 10 cents to $11.80.