Life Science REIT, real estate investment trust focused on UK life science properties, has acquired Oxford Technology Park (OTP), a 20 acre (8 ha) science and technology park which, once fully developed, will comprise up to 450,000 ft2 (41,800 m2) of mixed-use life science space and amenity assets.
The first buildings on the park are already complete and delivering rental income.
OTP was acquired for a purchase price of £120.3 mln (€142 mln) from Angus and Alicia Bates, who have owned and developed the park since 2007.
The acquisition includes OTP's debt of £33.8 mln and the company will also provide up to £62.7 mln of forward funding to complete the park's build-out, which will continue to be managed by the developer until practical completion. The initial consideration is being funded by the company's existing cash resources.
OTP is located less than 2 miles from Oxford University's Begbroke Science Park campus, seven miles north of Oxford city centre and adjacent to Oxford Airport.
Simon Farnsworth, managing director of Ironstone Asset Management, the company's investment adviser, said: 'There is virtually no new supply of this type, size and quality of space in the Oxford catchment and we are delighted to have secured such an important and strategic asset of scale for our shareholders.
'It has been great to work with Angus and his team whose vision and hard work has resulted in this opportunity to provide state of the art space for new and established businesses in the area. We look forward to creating a thriving hub of innovation in this perfectly situated asset for the rapidly growing Oxford life science community.'
Angus Bates, CEO of the developer, Oxtec Developments, commented:'Taking the vision to create OTP fifteen years ago through to the successful high-tech park that is now evolving has been challenging and hugely fulfilling, providing a unique product to the Oxford science community.
'We are thrilled to be handing the reins over to Life Science REIT and their experienced management team to take the park forward to the next stage.'
The park provides flexibility for the laboratory, production and office uses required for life science occupiers along with amenity facilities. Unit sizes range from 6,000-50,000 ft2. Headline rents are £16-20 per sq ft for hybrid space and £28 per sq ft for offices, which reflects a net initial yield on purchase of 4.75%.
The first two of OTP's 11 units are already complete with one fully let to LGC's The Native Antigen Company, at a headline rent of £16 per sq ft.
Five further units are due to be completed during 2022 and the final four units during 2023. The acquisition also includes a completed hotel, let to leading provider Premier Inn until 2045.
The company has now invested all of the equity proceeds from its oversubscribed IPO in November 2021 in seven transactions at a total acquisition value of £383 mln.
