REG - Life Science REIT - £38.7m Acquisition at Cambourne Business Park

Jefferies FinancialAnnouncement

07/12/2021 08:20

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RNS Number : 7450U  Life Science REIT PLC  07 December 2021

7 December 2021

LEI: 213800RG7JNX7K8F7525

 

Life Science REIT plc

("Life Science REIT" or the "Company")

 

£38.7 million acquisition at Cambourne Business Park

Second major transaction following the Company's IPO in November 2021

Life Science REIT (AIM: LABS), the real estate investment trust focused on UK
life science properties, announces that, on 6 December 2021, it completed the
acquisition of three buildings at the Cambourne Business Park near Cambridge
through the purchase of Scholar Property Investments Limited, the sole assets
of which are the freehold interests in the three buildings. The purchase price
of £38.7 million, excluding acquisition costs, was satisfied entirely in cash
and reflects a net initial yield of 5.6%.

This acquisition was under exclusivity at the time of the Company's IPO last
month and marks the second major transaction to be completed by the Company.

Cambourne Business Park is approximately eight miles west of Cambridge and is
part of the cluster of science and technology parks that have evolved from the
innovative scientific research output of the University of Cambridge, one of
the world's leading universities.

The three buildings, which total more than 100,000 sq ft of office and MedTech
space, comprise two two-storey units and one three-storey unit and are let to
tenants that include a major European MedTech company.

Occupancy is currently over 83% and the property benefits from a 24 month
rental guarantee on currently unoccupied space. The property currently
generates c. £2.27 million of contracted rent per annum, including
guarantees, and has a weighted average unexpired lease term (WAULT) of 5.39
years.

Asset management plans include enhancing the attraction of the buildings to
life science companies by investing in new tenant amenities and creating
further laboratory space.

Savills acted on behalf of Life Science REIT and Knight Frank 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 fourth acquisition, and
second major acquisition, since our IPO last month. Cambourne Business Park
has the opportunity to become the premier science park to the west of
Cambridge, where transport links are particularly strong and are set to be
enhanced by further infrastructure improvements over the next few years. The
acquisition of the three buildings at the park benefits from attractive
current income along with investment opportunities in further laboratory space
and amenity facilities to drive the buildings' attraction to life science
companies."

 

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).

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Ironstone Asset Management - Investment Adviser
 Simon Farnsworth                                               via Buchanan below

 Panmure Gordon - Nominated Adviser and Joint Corporate Broker  +44 20 7886 2500
 Atholl Tweedie / Sapna Shah / Philip Shields / Chloe Ponsonby

 Jefferies International Limited - Joint Corporate Broker       +44 20 7029 8000
 Tom Yeadon / Andrew Morris / Oliver Nott

 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 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
(https://lifesciencereit.co.uk)

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