Life Science REIT has released its first set of results since its £350m launch in November 2021.
The preliminary results give a snapshot of the nascent REIT’s performance up to the end of December, revealing a portfolio valued at £192m, earning £500,000 in rent and turning a profit of £7.7m thanks to a valuation uplift.
Just over £9m of rent had been agreed, a yield of 4.4%, with occupancy at 81%.
However, the REIT was keen to point out that a lot had changed since then. All of the group’s IPO proceeds have now been deployed following the purchase of Oxford Technology Park and 7-11 Herbrand Street, WC1, earlier this month.
The REIT paid £120.3m for the 20-acre Oxford park – less the existing debt facility of £34.m. It has committed up to £62.7m of forward funding to complete the park’s build-out to 450,000 sq ft of mixed-use life science space and amenity assets.
Herbrand Street is an iconic art deco building in London’s Knowledge Quarter, which was bought for £85m, reflecting a net initial yield of 4.42%.
Chair Claire Boyle said: “In the six months following the company’s IPO in November last year, we have successfully deployed the £350m raised at IPO in a highly attractive blend of seven exciting projects in the golden triangle of life science innovation in Oxford, Cambridge and London. These projects are diversified by location, asset size and development stage and comprise immediately income producing assets through to new-build and conversion opportunities. Life science property is a highly attractive asset class, and the potential to add value through active asset management means that we are confident of making further progress in the year ahead.”
The REIT has also signed a debt facility with HSBC for a further £150m, and drew down the first £64m this month.
Also this month, Primary Health Properties CFO Richard Howell, joined the board as an independent non-executive director, while the team at its investment adviser, Ironstone Asset Management, expanded.
Simon Farnsworth, managing director at Ironstone, added: “The group’s seven acquisitions since IPO last year represent an excellent platform for the growth of the company, which now has prominent and diverse assets in each of the key life science centres of Oxford, Cambridge and London. In addition to progressing the management and development of these assets, we are continuing to progress the group’s acquisition pipeline and are excited by the quality of assets that we have identified and are actively reviewing.”
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