IAVI’s Brooklyn Design Laboratory/Historic Tax Credit

Transaction

By Mike GoldrichExecutive Vice President & COO

June 24, 2009

IAVI’s mission and approachIAVI’s mission is to ensure the development of safe, effective, accessible, preventive HIV vaccines for use throughout the world.

Partnership is a core IAVI principle. We work closely with governments, scientists,

and communities in low- and middle-income countries.

IAVI Today

Fully integrated vaccine research and development effort • Over 225 full time staff operating in 25 countries with

regional offices in Amsterdam, Johannesburg, Nairobi, and New Delhi

• A (growing) global research laboratory program working with over 40 R&D organizations and 500 staff in partner organizations

• Trials conducted in 12 countries and on 4 continents• Six novel vaccine products moved into human clinical

trials in six years and a seventh just approved• Raised > $850M in new resources from more than 12

governments, numerous foundations and private sources

IAVI Offices and Partners

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Evolution of the IAVI Design Laboratories

IAVI AIDS Vaccine Design and Development Laboratory

•A Critical Partner in IAVI’s Global AIDS Vaccine Discovery Program

•Vaccine Design: Neut Ab and Control of HIV Problems•Vaccine Development: Prioritization, Formulation and Process

Development

Brooklyn Army Terminal

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IAVI’s Design Lab is located on the 8th floor of the building A at the BAT

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Entrance to the Lab

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Post construction

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Post Construction

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Roof Pre-construction

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Roof: During Construction

The IAVI experience• Challenges

– These are complex transactions• Our first transaction (New Markets) had one equity investor (US Bank) and two tax

credit allocatees (UFA and Greystone)• Our second transaction (Historic and New Markets) was layered on top of the first

deal, with multiple parties: equity investor and tax credit allocatee (Bank of America), the developer of the BIOBAT (Phase 3 Properties), and the BIOBAT (joint NYC EDC and NY State entity)

– Our project had to be consistent with the Historic regulations – Timing----our Historic transaction had to close before we moved into Laboratory– There were a number of issues outside of our control:

• The larger Historic transaction and business agreement for the BIOBAT—on which our deal depends

• Lessons Learned– These transactions can be important sources of additional revenue---and can be a ‘win-

win’. But are resource intensive (management time, legal expenses)– Have expert advisors to held navigate the regulations and documentation– The more the participants can understand the key transaction points (documentation,

risks, commitments) early in the process---the better

 

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Thank You