Life Science REIT disposes of Oxford asset to focus on large scale developments

Life Science REIT (LABS) has completed the sale of Lumen House in Oxford for £7.65m 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, which is located on the Harwell Campus in Oxford, was bought by LABS as a redevelopment opportunity with the current occupier soon to vacate the building.

However, as market conditions have changed, the company has decided to sell the property and focus its capital on larger schemes that are further progressed. 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 £7.05m, 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.”

LABS : Life Science REIT disposes of Oxford asset to focus on large scale developments

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