8-KMaterial AgreementsFinancial Events

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Material Agreement (Apr 6, 2015)

Filed April 6, 2015For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. has entered into a significant long-term lease agreement for new corporate headquarters and laboratory space. The company will lease approximately 295,000 square feet at 675 West Kendall Street in Cambridge, Massachusetts, with the move anticipated in early 2019. This new facility represents a substantial expansion of their operational footprint. The lease is a non-cancelable, 15-year agreement commencing in May 2018, with rent expected to start around February 2019. Annual rent will begin at $19.8 million with 3% annual increases. Notably, the landlord will contribute $56.1 million towards building and tenant improvements, mitigating some of the initial capital outlay for Alnylam. The company also retains an option to renew the lease for two additional five-year terms and has a right of first offer on space in a neighboring building.

Key Highlights

  • 1Alnylam Pharmaceuticals signed a new 15-year lease for approximately 295,000 sq ft of laboratory and office space at 675 West Kendall Street, Cambridge, MA.
  • 2The new corporate headquarters is planned to be operational in early 2019.
  • 3Annual rent will start at $19.8 million, with 3% annual increases.
  • 4The landlord is contributing $56.1 million towards base building and tenant improvements.
  • 5The lease term commences May 1, 2018, with rent payments expected around February 1, 2019.
  • 6Alnylam has options to renew the lease for two additional five-year terms.
  • 7The company maintains its current lease at 300 Third Street through September 2021, with renewal options.

Frequently Asked Questions

This lease agreement signifies a major expansion of Alnylam's operational facilities, as they are securing a significantly larger space for their corporate headquarters and laboratories. This move suggests confidence in the company's growth trajectory and its need for enhanced research and development capacity.

The lease commits Alnylam to substantial future rental payments, starting at $19.8 million annually with 3% increases for 15 years. However, the landlord's significant contribution of $56.1 million towards improvements will help offset some of the initial costs associated with setting up the new facility.

Alnylam intends to move into the new premises in early 2019. The initial lease term is 15 years, starting from when rent payments are due (around February 2019), with options to extend the lease for two additional five-year periods, demonstrating a long-term commitment to this location.

Yes, Alnylam will continue to lease its current 129,000 sq ft facility at 300 Third Street, Cambridge, MA, until at least September 2021, as its lease extends beyond the planned move-in date for the new headquarters.