Today is
Fri., 3rd September 2010
06:03
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BRI FAQs
- 1. In what regions does BioRealty (“ BRI”) operate?
BRI invests, develops, and provides capital advisory services throughout the United States and Canada. Currently, BRI has offices in Southern California and Washington D.C., providing the firm a balanced geographical base and ready access to any location in North America. - 2. What type of facilities does BRI invest in and develop? (Biomedical)
BRI invests in and develops facilities occupied by one or more biomedical companies. - 3. What do you mean by the term “biomedical company?” (Biomedical)
Biomedical companies include biotechnology, medical device, medical equipment, and pharmaceutical companies, scientific research institutions, government agencies, medical organizations, and other entities involved in the life science or medical industries. - 4. For what type of companies does BRI provide real estate capital advisory services?
BRI provides capital advisory services for companies in either the biomedical or biofuel industries. - 5. What do you mean by the term “biofuel industry?” (Biofuel)
The biofuel industry includes developers, cooperatives, public and private entities involved in the production of ethanol (grain-based or cellulosic), biodiesel, butanol and other emerging biofuels. - 6. What type of biomedical investment and development transaction does BRI do?
As an investor/developer, BioRealty performs 3 types of transactional services for its biomedical customers: 1. Sale-Leasebacks (for lease only) – Acquisition of an existing facility, which is leased-back to the current occupant. 2. Buy-to-Suits (for lease or owned) – Acquisition and rehabilitation of an existing facility to satisfy specific client requirements (“to-suit”). 3. Build-to-Suit Development (for lease or owned) – Ground up development of a new facility to-suit. - 7. What type of biomedical transaction does BRI do most frequently?
Sale leasebacks are probably the most common type of transaction for BRI. BRI has dedicated capital for to-be-acquired, long term leased biomedical properties, which it needs to invest. BRI is actively pursuing biomedical sale-leasebacks in all North American markets as is able to rapidly close. - 8. Can BRI acquire an existing facility, rehab it and lease it to my biomedical company?
BRI refers to these transactions as buy-to-suits. In today's market where many good, vacant biomedical facilities exist, buying and rehabilitating an existing building may be an excellent decision for your firm. BRI can assist you in estimating the rehab costs and schedule, providing you a lease rate, and evaluating the buy-to-suit alternative versus ground up build-to-suit development. - 9. Why should I hire a capital advisor for my biofuel project? (Biofuel)
Acquiring or developing an ethanol or biodiesel facility is a complicated endeavor. Most firms that take on this challenge do not also specialize in the intricacies of biofuel project finance. BRI is able to leverage its relationships with major lending institutions, private equity and institutional sources to provide capital solutions that eliminate search costs, accelerate speed to market and achieve attractive terms for its biofuel clients. Unlike other capital advisors, BRI specializes in biofuel projects and relies less on broadly syndicated financings; therefore, BRI can more rapidly provide an attractive capital markets solution for your biofuel project. Lastly, BRI can also add significant value in the more detailed issues associated with raising capital, such as assisting in negotiating financing documentation and addressing complex inter-creditor issues. - 10. Why should I hire a build-to-suit developer rather than just manage the development process myself?
When developing a new facility, hiring a 3rd party developer is not always necessary. If your firm has all the necessary biomedical construction and development expertise in-house, extensive access to capital, and is not concerned about adversely impacting financial statements or optimizing tax benefits, hiring a 3rd party developer probably does not make sense; however, most companies don’t fit this profile. BioRealty can fill these missing gaps, free up precious internal resources, and because BRI specializes in the development of large, complex, biomedical facilities, BRI can add significant value through specialized construction, development and financial expertise. - 11. I notice you mention leasing - should I lease or own my facility?
It depends upon your company's specific situation. No two clients are identical. Generally public companies or companies with limited working capital prefer leasing; however, BRI's clients have a wide range of needs and as a result BRI has assisted its clients in leasing, owning, completing synthetic leases, and completing tax advantaged lease arrangements. BRI can assist your company in evaluating all available lease vs. own alternatives to insure you are making the best decision for your particular situation. - 12. What are the benefits of leasing?
Leasing will positively impact your company's financial statements, enhance ROE and ROI, and enhance key financial ratios, and leasing allows your company to deploy cash in a more productive manner. Leasing may also allow you to optimize tax benefits. BRI's unique ability to maximize these multiple benefits and at the same time recognize the value inherent in large, complex facilities differentiates BRI from most traditional real estate investors. - 13. If I want to lease can I have a lease which allows me flexibility? (Biomedical)
Yes. Many landlords will tell you that they have a set lease form which is not negotiable. This is not the case with BRI. BioRealty strives to customize the lease arrangement to fit your specific needs, which means BRI will consider all lease types and terms. - 14. If I choose to lease, what will my lease rate be? (Biomedical)
BRI determines a client's lease rate based on the actual cost to build or buy the facility and the cost of capital. Often times this means you pay a lease rate that is lower than the prevailing market rates for an existing, available-for-lease biomedical facility. To accurately determine your lease rate, BRI will need to work with you to decide on the most appropriate type of lease. If the project involves tenant fit-out or development BRI will work with you to outline general specifications for your project, and complete a preliminary budget and schedule. Once this is done, BRI will provide you a lease rate based upon the lowest cost of internal and/or external capital available. Moreover, BRI performs this process on a completely open book basis. - 15. What role do Brokers play in your business activities?
Brokers play an essential part in BRI’s activities. Brokers are often hired by the biomedical client and most recognize BioRealty as one of the leading investment/development firms in this unique industry segment. If BioRealty is repositioning a formerly leased biomedical property, BRI will hire a brokerage firm to execute the repositioning (leasing) and exit (sale) strategies. In addition, many Brokers - who know BRI’s specialty and ability to close quickly - seek out qualifying investment opportunities on behalf of BRI. BRI is very pleased to have long standing relationships which a majority of the nation’s leading brokerage firms with a biomedical specialty, and the BRI team hopes to continue growing these relationships in the future. - 16. What differentiates BRI?
BioRealty is the only investment/development firm in North America specialized exclusively on biomedical and biofuel properties. BRI is also well known for:
- Expertise with large, complex, and specialized bio-projects;
- dedicated capital specifically for long-term, leased biomedical projects;
- its “Open book” development and capital advisory processes; and
- long-term, repeat client relationships.
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