Life Science REIT, the real estate investment trust focused on UK life science properties, has completed the acquisition of Lumen House on the Harwell Science and Innovation Campus at Didcot near Oxford. Lumen House was acquired on a long leasehold of more than 950 years for £7.05 million satisfied entirely in cash. This represents a net initial yield of 4.4% after acquisition costs.
The property, which formed part of the Company’s pipeline of assets referenced in the IPO prospectus, comprises more than 18,000 sq ft of office space, which is 100% let to a single tenant. The property currently generates a contracted rent of c. £330,000. Lease expiry is within 18 months, creating a number of opportunities for the Company with the existing occupier or with new tenants.
Simon Farnsworth, Managing Director of Ironstone Asset Management Ltd, the Company’s Investment Adviser, said: “Our strategy, detailed at the time of our recent IPO, is to create a diverse portfolio of properties focused on the “Golden Triangle” of Oxford, Cambridge and London St Pancras. We recently completed the substantial transaction of Rolling Stock Yard in London and today’s announcement of this smaller transaction marks our first acquisition in the Oxford area, adding further diversity to our property portfolio in line with our strategy.”