Kilroy Realty Corporation Leases Just Completed Biotech Facility in North San Diego County to Vical for Corporate Headquarters
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SAN DIEGO--(BUSINESS WIRE)--Feb. 11, 2002--Kilroy Realty Corporation (NYSE:KRC) has signed a 15-year lease with Vical Incorporated (Nasdaq:VICL) for a 68,000-square-foot facility designed and built specifically for biotech operations in northern San Diego.
The facility, located in Pacific Corporate Center in Sorrento Mesa, will serve as Vical's headquarters.
The two-story Vical corporate center contains pharmaceutical GMP manufacturing, research laboratory and office space and will bring together staff now occupying three separate facilities in the San Diego area. Phased-in occupancy of the new space is expected to begin during the third quarter. Kilroy Realty, the most active commercial developer in north San Diego, designed the building for single or multiple life science tenant(s) with special infrastructure to accommodate wet laboratories and pharmaceutical manufacturing. The Vical lease was signed just two months after the building was completed in November, 2001, demonstrating the continuing strength and growth within San Diego's life science industry, reported Steve Scott, senior vice president of Kilroy Realty.
"Having everyone under one roof will be a definite advantage, and this move will allow us to increase our manufacturing capacity for both clinical and commercial production," said Vical President and CEO Vijay Samant.
Mr. Samant noted that the new facility is perfectly suited to the company's needs. "In the past, we have been opportunistic in seeking additional space as our requirements increased," he said. "As a result, we currently occupy space in three separate facilities, with none of those being well-matched to our plans for continued development. Vical's new corporate center is a dedicated biotech facility, designed for research and manufacturing, that should meet our current needs and accommodate our anticipated growth for the foreseeable future."
Vical was represented by Rick Sparks and Brad Bennett of CB Richard Ellis while Kilroy Realty Corporation was represented by Robert Merkin and Doug Lozier, also of CB Richard Ellis.
A leading owner/operator and developer of office and industrial space for innovative, knowledge-based companies in San Diego, Kilroy Realty has completed major facilities for Applied Micro Circuits Corp., Ericsson, biotech leader Diversa Corp. and Peregrine Systems, Inc., one of the world's leading software companies. In San Diego County, Kilroy Realty owns and manages more than 2.7 million square feet that was 100 percent occupied at December 31, 2001 with more than one million square feet in the pipeline in the Sorrento Mesa, Del Mar and Carmel Mountain Ranch submarkets.
About Kilroy Realty
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for KRC's current development program include West Los Angeles, El Segundo and coastal San Diego, where the company's total development pipeline is more than $500 million. At December 31, 2001, the company owned 7.2 million square feet of commercial office space and 5.1 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.
About Vical Incorporated
Vical Incorporated, The Naked DNA Company(TM), is focused on the development of pharmaceutical product candidates based on its patented gene delivery technology. A number of therapeutic and vaccine product candidates are currently under development for the prevention or treatment of cancer, infectious diseases and metabolic disorders by Vical and its collaborative partners, including Merck & Co., Aventis Pasteur, Aventis Pharma, Human Genome Sciences, Centocor Inc., Merial and Boston Scientific Corporation. Allovectin-7(R), which uses a lipid-DNA complex to help the immune system recognize and attack cancer cells, is in Phase II and Phase III testing in certain patients with metastatic melanoma and in Phase II testing in patients with head and neck cancer. Leuvectin(TM), which uses a lipid-DNA complex to stimulate an immune response against cancer cells, is in Phase II testing in patients with prostate cancer. More information can be found at www.vical.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Kilroy Realty Corp.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year.