Further £50.1 million acquisition at Cambourne
20 December 2021
LEI: 213800RG7JNX7K8F7525
Life Science REIT plc
("Life Science REIT" or the "Company")
Further £50.1 million acquisition at Cambourne Business Park
Major transaction builds the Company's presence on a key Cambridge business park
Life Science REIT (AIM: LABS), the real estate investment trust focused on UK life science properties, announces that, on 17 December 2021, it completed the acquisition from Coal Pension Properties Limited of the freehold to a further three buildings at Cambourne Business Park near Cambridge. The purchase price of £50.1 million, excluding acquisition costs, was satisfied entirely in cash and reflects a net initial yield of 5.5%.
This acquisition, which was under offer at the time of the Company's IPO last month, follows the £38.7 million acquisition announced on 7 December 2021 of an initial three properties at Cambourne Business Park. Following today's announcement, the Company's office and laboratory space at the park exceeds 230,000 sq. ft across six adjoining properties, representing 100% of the commercial property on the site.
Cambourne Business Park is approximately eight miles west of Cambridge. It benefits from strong transport links and a vibrant business environment. In addition to integration with the first phase of acquisitions on this site, which comprises three buildings containing a mixture of office and lab MedTech space, asset management plans include expenditure to create further lab facilities and the rebranding of the six acquired assets to create the premier science park to the west of Cambridge.
This latest acquisition comprises almost 130,000 sq. ft of high-quality office space let to a variety of occupiers. Occupancy is currently 77.48% with a rental guarantee for 18 months on unoccupied space. The property currently generates c. £2.92 million of contracted rent per annum, including guarantees, and has a weighted average unexpired lease term (WAULT) of 5.67 years.
Savills acted on behalf of Life Science REIT and JLL acted for the vendor.
Simon Farnsworth, Managing Director of Ironstone Asset Management Ltd, the Company's Investment Adviser, said:
"We are delighted to announce Life Science REIT's fifth acquisition since IPO. This is an exciting strategic transaction that further strengthens our position at the Cambourne Business Park near Cambridge, one of the world's top cities for the creation of innovative, science-based businesses.
"We have moved swiftly to convert our exclusive pipeline of attractive opportunities outlined at IPO into a leading portfolio of five completed transactions to generate value for shareholders. We have now invested over 50% of the gross proceeds raised at IPO last month. We look forward to continuing to progress properties in our exclusive pipeline in line with our strategy of investing in growth opportunities in the 'Golden Triangle' of life science hubs in Oxford, Cambridge and London St Pancras."
FOR FURTHER INFORMATION, PLEASE CONTACT:
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Ironstone Asset Management - Investment Adviser |
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Simon Farnsworth |
via Buchanan below |
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Panmure Gordon - Nominated Adviser and Joint Corporate Broker |
+44 20 7886 2500 |
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Atholl Tweedie / Sapna Shah / Philip Shields / Chloe Ponsonby |
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Jefferies International Limited - Joint Corporate Broker |
+44 20 7029 8000 |
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Tom Yeadon / Andrew Morris / Oliver Nott |
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Buchanan - Financial PR |
+44 20 7466 5000 |
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Mark Court / Henry Wilson / Verity Parker LifeSciencereit@buchanan.uk.com |
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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).
Notes to editors
Life Science REIT plc is a property business focused solely on the UK's growing life science sector, specifically targeting opportunities in the "Golden Triangle" research and development hubs of Oxford, Cambridge and London St Pancras. The Company's intention is to become the property provider of choice for life science companies in the UK, whilst enabling shareholders to gain exposure to a specific growth sector.
The objective of the Company's investment policy is focused on capital growth, whilst also providing a growing level of income, by investing primarily in a diversified portfolio of properties that are leased, or intended to be leased, to tenants operating in the life science sector in the UK.
Life Science REIT joined the AIM market of the London Stock Exchange on 19 November 2021, having raised £350 million in its IPO. Its shares trade under the ticker LABS.
Further information is available at https://lifesciencereit.co.uk
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