Life Science REIT has bought Rolling Stock Yard, N7, near St Pancras Station for £77m.
The nine-storey office and laboratory building on York Way was under exclusivity at the time of the REIT’s £350m float last month, and is the first deal to be completed by the company.
Life Science purchased Deepdale Investment Holdings, which has the freehold interest in Rolling Stock Yard as its sole asset. Deepdale was a joint venture between Newmark Properties, Argo Real Estate and Investec Bank.
Simon Farnsworth, managing director of Ironstone Asset Management, Life Science’s investment adviser, said: “Rolling Stock Yard is a premium building at the heart of the important development area near London St Pancras.”
The area is a significant life sciences hub, where Google, DeepMind, the Francis Crick Institute and others have offices.
“Rolling Stock Yard offers attractive current income but, importantly, also includes significant asset management opportunities, including the creation of further laboratory space to drive additional rental income growth,” Farnsworth said.
The building, completed in March 2020, comprises 50,000 sq ft of office and laboratory space with a BREEAM Excellent rating and an EPC rating of A. Occupancy of the property is at 76%, with the company benefiting from an 18-month rental guarantee on the remainder.
The property currently generates £3,478,000 of contracted rent per annum including guarantees, with a weighted average unexpired lease term of seven years. The deal reflects a net initial yield of 4.4%.
Life Science said “a variety of potential occupiers” were “showing strong interest” in the unlet space.
Savills acted on behalf of Life Science REIT; BH2 acted for the vendors.
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