Life Science REIT PLC (AIM:LABS), a real estate investment trust that invests in UK scientific research facilities, said it has completed the sale of Lumen House in Oxford for £7.65 million to Harwell Science and Innovation Campus.
Lumen House is based at the Harwell Campus business park in Oxfordshire and has been bought by owners of the business park, Brookfield, the UK Atomic Energy Authority and the Science and Technology Facilities Council.
The trust said the sale provides Life Science REIT with additional flexibility to progress more “transformational opportunities”.
The sale will allow it to deliver fully fitted laboratories at Cambourne Park Science and Innovation Campus in Cambridge and progress the development of Oxford Technology Park, it said.
Life Science REIT bought Lumen House in December 2021 for £7.05 million, generating a 9% uplift on the purchase price from the sale.
The trust said the disposal price represents a 5.6% net initial yield and is 2% ahead of June 2023 book value.
"The economic environment in which Life Science REIT acquired Lumen House is very different to the one we face today and the company is making capital allocation decisions which reflect that,” said Simon Farnsworth, managing director of Ironstone Asset Management, the trust’s investment adviser.
“By realising value from this investment now, we can better focus our efforts and the company's capital on larger scale opportunities where we are already on site and where we believe that the return profile is more attractive.”