Life Science REIT goes public in largest London listed UK REIT IPO

The firm, which has appointed Ironstone Asset Management Limited as its Investment Adviser, issued 350 million ordinary shares of £0.01 each, becoming the first UK REIT focused on life science properties.

‘This is the largest London listed UK REIT IPO since 2016 with its success underlining the significant opportunity we have identified in the UK life science property sector, which is not currently represented by a specialist business on the public markets,’ said Simon Farnsworth, managing director of Ironstone Asset Management, the Company's Investment Adviser. ‘We will now act swiftly to advance the pipeline of income-producing opportunities and exciting development opportunities currently under exclusivity or in advanced negotiations. We look forward to updating the market in due course.’

The company will seek to invest in a diversified portfolio of properties across the UK which are typically leased or intended to be leased to tenants operating in, or providing a benefit to, the life sciences sector including wet and dry laboratories, offices and co-working space, manufacturing and testing facilities, and data centres.

It has identified a £445 mln pipeline of projects of which £305 mln is under exclusivity or in an advanced state of negotiations.

The company is targeting a net asset value (NAV) total return in excess of 10% per annum and an initial dividend yield of 4% per annum, with an intention to grow to 5% per annum in the early years.

Claire Boyle, Chair of Life Science REIT plc, said: ‘We are delighted to see such strong support from a broad range of institutional and retail investors for the Issue, the proceeds of which will enable the Company to begin investing in an extensive pipeline of projects. We welcome all of our new shareholders and look forward to updating them on the deployment of the IPO proceeds.’