Life Science REIT has acquired a London office building for £85m as it continues to build its portfolio following launch last year.
The group has bought 7-11 Herbrand Street, which is located close to University College Hospital and University College London in London’s Knowledge Quarter of Bloomsbury, King’s Cross and St Pancras, at a net initial yield of 4.4%. The entire building is currently let to Thought Machine, one of the UK’s leading fintech companies, until October 2026.
The company said the 67,097 sq ft building represents an “ideal opportunity for development as a major life science asset”. A feasibility study has determined the building is suitable for lab conversion, and it benefits from large floor to ceiling heights, and large, column-free floor plates.
Life Science REIT has now deployed more than £262m of total capital since its IPO, representing around 75% of the net proceeds raised at IPO.
Simon Farnsworth, managing director of Ironstone Asset Management, the company’s investment adviser, said: “We are delighted to have secured such a major acquisition for the company in London’s Knowledge Quarter. The important location and prominent size of the asset, along with attractive physical characteristics such as a large floor to ceiling height, represent outstanding potential for conversion into a leading long-term life science property.
“The transaction represents further progress in the deployment of our IPO proceeds, which are now approximately 75% invested and I am pleased to report that the company’s near-term acquisition pipeline remains extremely attractive.”
LABS : Life Science REIT buys in London