Life Science REIT, a real estate investment trust focused on UK life science properties, has completed the acquisition of Rolling Stock Yard, a nine-storey office and laboratory building near London's St Pancras station from a joint venture of Newmark Properties, Argo Real Estate and Investec Bank.
The purchase price of £77.0 mln, excluding acquisition costs, was satisfied entirely in cash and reflects a net initial yield of 4.4%.
This acquisition was under exclusivity at the time of the Company's IPO last month and marks the first major transaction to be completed by the Company.
Rolling Stock Yard, which comprises more than 50,000 sq ft (4,650 m2) of high quality office and laboratory space, was completed in March 2020 and meets the company's sustainability objectives with a BREEAM Excellent rating.
Occupancy of the property, which has attracted major life science companies including Gyroscope Therapeutics, is at 76%, with the company benefiting from an 18 month rental guarantee on the remainder. The property currently generates £3.48 mln of rent per annum including guarantees and has a weighted average unexpired lease term (WAULT) of 7 years.
Savills acted on behalf of Life Science REIT and BH2 acted for the vendors.
Simon Farnsworth, managing director of Ironstone Asset Management, the company's Investment Adviser, said: ‘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.’
