Chicago-based alternative investment manager Harrison Street and UK life sciences property specialist Trinity Investment Management have refinanced a €300 mln portfolio of five life sciences and innovation properties across the UK.
Under the terms of the transaction, Lloyds Bank Commercial Banking and funds managed by Oaktree Capital Management have provided the JV partners with a new loan facility that consists of an investment loan and a capital expenditure facility. The JV intends to use the proceeds to refinance and consolidate its existing borrowing facilities as well as provide capital to refurbish and expand the campuses.
The JV acquired the 1.6 million sq ft (150,000 m2) portfolio of lab and office space, the largest private life sciences portfolio in the UK, in December 2019 from hedge fund Angelo Gordon. The life science campuses are located in Kent, Colworth, Manchester, Newcastle and Edinburgh and include GW Pharma and Unilever as anchor tenants.
Paul Bashir, CEO of Harrison Street’s European business, said that the closing of the deal reflects the strength of the portfolio and the firm’s commitment to the UK life sciences and innovation sector. ‘Ensuring access to world-class laboratory and research infrastructure has never been more important globally and Harrison Street continues to focus on delivering critical facilities to support UK life sciences,’ Bashir said. ‘We are grateful to have the backing of Lloyds Bank and Oaktree, who recognize the value of these assets and we look forward to benefiting from their expertise and resources as we continue to grow our platform in partnership with Trinity.’
Klaus Betz-Vais, managing director and head of global investors and listed clients at Lloyds Bank Commercial Banking, said, ‘The government has set out its vision for the UK to be a global hub for life sciences, a sector which has generated more than £70 bn in revenue per annum in recent years. Part of making this vision a reality is ensuring we have a high standard of space designed specifically for the industry’s needs.
He added: 'That’s why we’re proud to be by the side of Harrison Street and Trinity as they invest in this expansive network of laboratory and office space – providing high quality bases for the domestic and international life sciences firms that form a crucial part of our economy. The loan reflects our first SONIA linked syndicated facility pioneering the market’s transition away from LIBOR.’
