|
Life Science REIT PLC on Monday reported interest from multiple buyers in a possible sale, as it continues to assess wind-down options. The investment trust focuses on life science-related property and has assets in Oxford, Cambridge and London. Life Science noted ‘significant amount of interest from a range of sources’, some of whom were given access to additional due diligence documents and met with the firm’s advisor Ironstone Asset Management Ltd. Alternatively, Life Science is considering winding down altogether. The firm said it will update further once it has concluded which option is likely to deliver the best returns. At June 30, Life Science’s net tangible assets totalled £232.1 million, or 66.3 pence per share, representing an 11% drop over six months. NTA at December 31 came to £260.4 million, or 74.4p per share. The decline was ‘broadly uniform decline across each of the company’s five assets’. Life Science attributed the downturn to ‘outward yield movement’, specifically for vacant property assets. The firm suggested this was ‘representative of the continued challenging backdrop overall together with slower than anticipated leasing activity in the Life Science market.’ Still, contracted rent has risen slightly to £17.4 million as of Monday from £15.9 million at December 31. Occupancy rates have also increased to around 85% from 84% during this period. Life Science noted ‘a minor technical covenant breach’ during its latest review, in which the result of a projected interest cover ratio test was 193%, below the required threshold of 200%. The firm said: ‘Further hedging could have been put in place to ensure this test was passed but given the ongoing strategic review the banks were supportive of providing a waiver instead.’ Life Science has agreed a waiver with its lending banks rather than trying to provide the necessary cover, adding: ‘The banks continue to be supportive of the company during this period.’ Also on Monday, the company said it has redesigned the final two buildings of Oxford Technology Park, increasing their estimated rental value by £350,000 to £2.1 million, at an additional cost of £5.0 million. Work is expected to begin in the coming months, subject to planning approval. Additionally, the development’s Nexus cafe and amenity site is expected to complete early in the fourth-quarter of 2025, ‘following strong demand from existing and potential occupiers’. Life Science shares were down 6.3% at 40.84 pence on Monday morning in London, for a market capitalisation of £142.9 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
