NEW YORK (AP) — Blackstone Real Estate Partners is buying BioMed Realty Trust Inc. in an all-cash deal valued at $8 billion.

The deal, for $23.75 per share, marks a 10 percent premium to BioMed's closing price on Wednesday.

San Diego's BioMed, which owns properties in the drug development and life sciences industries, said Thursday that its board of directors approved the deal. The companies expect to close the acquisition in the first quarter of next year.

BioMed CEO Alan D. Gold said demand is outpacing supply for real estate to support a growing life sciences industry and that the sale helps maximize the company's value. Blackstone was drawn to BioMed because of the company's holdings in key life sciences markets like Boston, San Francisco and Seattle.

"We believe in the long-term fundamentals of this sector, particularly in locations with top-tier educational and research institutions," said Nadeem Meghji, co-head of U.S. real estate acquisitions for Blackstone. "