Last checked at 1 Dec 2023 07:00
1 December 2023
LEI: 213800RG7JNX7K8F7525
Life Science REIT plc
("Life Science REIT" or the "Company")
Sale of Lumen House, Harwell Oxford
Life Science REIT (LSE: LABS), the real estate investment trust focused on UK life sciences properties, announces that it has completed the sale of Lumen House for £7.65 million to Harwell Science and Innovation Campus, a joint venture between Brookfield and the UK Atomic Energy Authority together with the Science and Technology Facilities Council. The disposal price represents a 5.6% net initial yield and is 2% ahead of June 2023 book value.
Lumen House is located on the Harwell Campus in Oxford and with the current occupier soon to vacate the building, presents an attractive development opportunity for the purchaser whilst providing Life Science REIT with additional flexibility to progress more transformational opportunities. These include delivering fully fitted laboratories at Cambourne Park Science and Innovation Campus in Cambridge and progressing the development of Oxford Technology Park.
Lumen House was acquired in December 2021 for £7.05 million with the disposal achieving a 9% uplift on the acquisition price.
Simon Farnsworth, Managing Director of Ironstone Asset Management, the Company's Investment Adviser, said: "The economic environment in which Life Science REIT acquired Lumen House is very different to the one we face today and the Company is making capital allocation decisions which reflect that. By realising value from this investment now, we can better focus our efforts and the Company's capital on larger scale opportunities where we are already on site and where we believe that the return profile is more attractive. The fully fitted laboratory initiative at Cambourne Park Science and Technology Campus is a great example of that approach."
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Enquiries:
Ironstone Asset Management - Investment Adviser | +44 20 3011 2160 |
Simon Farnsworth, Managing Director Simon.farnsworth@ironstoneam.com | |
Joanna Waddingham, Head of Investor Relations and Corporate Affairs | |
Joanna.Waddingham@ironstoneam.com | |
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Link Company Matters Limited - Company Secretary |
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labs_cosec@linkgroup.co.uk |
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Panmure Gordon (UK) Limited - Joint Corporate Broker | +44 20 7886 2500 |
Alex Collins / Tom Scrivens | |
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Jefferies International Limited - Joint Corporate Broker | +44 20 7029 8000 |
Tom Yeadon / Andrew Morris / Oliver Nott / Harry Randall
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G10 Capital Limited - AIFM | +44 20 7397 5450 |
Maria Baldwin | |
Buchanan - Financial PR |
+44 20 7466 5000 |
Mark Court / Henry Wilson / Verity Parker | |
LifeSciencereit@buchanan.uk.com |
Notes to editors
Life Science REIT plc is a specialist property business focused on the UK's growing life science sector. The Company's portfolio of assets is located across the "Golden Triangle" of research and development hubs in Oxford, Cambridge and London's Knowledge Quarter and its strategic vision is to become the property provider of choice for life science companies in the UK.
Life Science REIT is addressing the acute demand-supply imbalance for laboratory space in the "Golden Triangle", which is characterised by low vacancy rates and prime rental increases. The UK life science sector itself is benefiting from a buoyant early stage funding environment, driving demand for laboratory space.
The Company's diverse portfolio of assets ranges from a 20-acre science park currently under development through to fully let buildings, with an important part of the Company's strategy being the conversion of existing properties to laboratory space.
The Company's investment policy is focused on capital growth whilst also providing a growing level of income.
Life Science REIT trades on the Main Market of the London Stock Exchange under the ticker LABS.
Further information is available at https://lifesciencereit.co.uk. To sign up for email alerts, please visit https://lifesciencereit.co.uk/investors/.