Alexandria Real Estate Equities, Inc. Announces Pricing of 8,800,000 Shares of Series...

Alexandria Real Estate Equities, Inc. Announces Pricing of 8,800,000 Shares of
Series D Cumulative Convertible Preferred Stock

PASADENA, Calif., March 19 /PRNewswire/ -- Alexandria Real Estate
Equities, Inc. (NYSE: ARE) today announced that it has agreed to sell
8,800,000 shares of Series D Cumulative Convertible Preferred Stock at $25.00
per share in an underwritten public offering. Gross proceeds from the
offering will be $220,000,000. The shares of Series D Cumulative Convertible
Preferred Stock will be convertible into shares of Alexandria Real Estate
Equities, Inc. common stock. J.P. Morgan Securities Inc., Citi, and Merrill
Lynch & Co. are acting as joint bookrunning managers in connection with the
offering. Alexandria Real Estate Equities, Inc. has granted the underwriters a
thirty day option to purchase up to 1,200,000 additional shares to cover over-
allotments, if any. The offering is expected to close on or about March 26,
2008, subject to customary closing conditions.
The Series D Cumulative Convertible Preferred Stock will be entitled to
receive dividends quarterly at a rate of 7.00% per year. The preferred shares
will be convertible, at the holder's option, at an initial conversion rate of
0.2477 common shares per $25.00 liquidation preference per preferred share (or
an initial conversion price of approximately $100.93 per common share),
subject to adjustment upon the occurrence of certain events. The initial
conversion price represents a 15% conversion premium over the closing sale
price of the Company's common shares on March 19, 2008 on the New York Stock
Exchange, which was $87.75 per share.
The Company intends to use the net proceeds from this offering to reduce
the outstanding balance on its unsecured line of credit, which it uses from
time to time to provide funds for general working capital and other corporate
purposes, including the selective development, redevelopment and acquisition
of life science properties.
Alexandria Real Estate Equities, Inc., Landlord and Developer of Choice to
the Life Science Industry(R), is a publicly-traded real estate investment
trust focused principally on the ownership, operation, management, selective
development, redevelopment and acquisition of life science properties. Our
properties are designed and improved for lease primarily to institutional
(universities and independent not-for-profit institutions), pharmaceutical,
biotechnology, medical device, life science product, service, and
translational medicine entities, as well as governmental agencies. We are the
largest and leading provider of real estate to the broad and diverse life
science industry with an asset base, as of December 31, 2007, that will enable
us to grow to approximately 22.4 million square feet consisting of 166
properties approximating 12.1 million rentable square feet, properties
undergoing ground-up development approximating 1.6 million square feet, plus
an imbedded pipeline for ground-up development approximating 8.7 million
developable square feet.
The Series D Cumulative Convertible Preferred Stock will be issued
pursuant to an effective registration statement on Form S-3 that was
previously filed with the Securities and Exchange Commission. This press
release does not constitute an offer to sell or the solicitation of an offer
to buy any of the Company's Series D Cumulative Convertible Preferred Stock,
nor shall there be any sale of the Series D Cumulative Convertible Preferred
Stock in any state in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
state.
Copies of the prospectus supplement relating to this offering, when
available, may be obtained by contacting: J.P. Morgan Securities Inc. 4 Chase
Metrotech Center, CS Level, Brooklyn, NY 11245 (tel: 718-242-8002; fax 718-
242-1350), or Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor,
Brooklyn, New York 11220 (tel: 718-765-6732; fax: 718-765-6734), or Merrill
Lynch & Co. (Prospectus Fulfillment), 4 World Financial Center, Prospectus
Department, New York, NY 10080. The offering may be made only by means of a
prospectus and related prospectus supplement.
This press release contains forward-looking statements within the meaning
of the federal securities laws. The Company's actual results might differ
materially from those projected in the forward-looking statements. Additional
information concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is contained in the
Company's Annual Report on Form 10-K and its other periodic reports filed with
the Securities and Exchange Commission.
SOURCE Alexandria Real Estate Equities, Inc.

Joel S. Marcus, Chief Executive Officer of Alexandria Real Estate Equities,
Inc., +1-626-578-9693