Life Science REIT has added a further £50m of assets to its growing portfolio.
The REIT, which launched on the London Stock Exchange in November , has bought three freehold buildings at Cambourne Business Park near Cambridge from Coal Pension Properties. The £50.1m purchase price reflects a net initial yield of 5.5%.
The three properties comprise almost 130,000 sq ft of office space let to a variety of occupiers. Occupancy stands at 77.48%, with a rental guarantee for 18 months on unoccupied space. The property currently generates £2.9m contracted rent per annum, including guarantees, and has a weighted average unexpired lease term of 5.67 years.
The purchase follows the £38.7m acquisition announced earlier this month of an initial three properties at Cambourne Business Park.
This deal boosts the REIT’s office and laboratory space at the park to more 230,000 sq ft across six adjoining properties, representing 100% of the commercial property on the site.
Simon Farnsworth, managing director at Ironstone Asset Management, Life Science REIT’s investment adviser, said: “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.”
Savills advised Life Science REIT on the acquisition; JLL acted for Coal Pension Properties.
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