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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Real Estate

Life Science REIT opts for wind-down after strategic review

Shares in Life Science REIT PLC (AIM:LABS) nudged higher after the group said it would begin an orderly wind-down of its portfolio, bringing to an end a six-month strategic review and formal sale process.

The specialist property investor, known as LABS, launched the review in March after a slowdown in leasing activity, persistent inflation and higher interest rates weighed on performance and left its shares trading at a steep discount to net asset value.

The board said it had received several indicative offers for the business and its assets but concluded that selling up gradually would deliver better value than accepting bids, which were at significant discounts.

The company plans to sell its assets over 12 to 18 months, starting with repaying borrowings before returning capital to shareholders.

Chair Claire Boyle said the wind-down would “maximise value for shareholders” after a difficult period for the business.

The shares rose 1% to 39.9p.

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