The UK鈥檚 only listed property business focused on the life science sector has launched a strategic review into the future of the company that will explore a potential sale or managed wind down.

Life Science REIT, which owns five assets in the Golden Triangle of London鈥檚 Knowledge Quarter, Oxford and Cambridge valued at 拢383m (鈧�457m), admitted the market remains challenging but also expressed confidence that a potential sale would attract multiple interested parties. Parties with a potential interest in making a proposal should contact Panmure Liberum, which will manage the process, the company added. 

Life Science REIT went public in November 2021, but its shares have persistently been trading below net asset value.

鈥淭he board acknowledges the challenges and significant headwinds that the company has faced since IPO, in common with the wider REIT sector, including higher inflation and elevated interest rates which have driven a fundamental slowdown in leasing activity and negatively impacted investor sentiment,鈥� the company said in a statement.

Other assets coming on the market this week include Paris鈥� 54 rue de Londres which is being marketed by advisor JLL and London鈥檚 86 Fetter Lane which is being sold through Savills for 拢90m, or a net initial yield of 6.5%. In Birmingham, LGIM is said to be seeking a buyer for The Whitmore Collection, an operational BTR asset comprising 220 homes and 7,500sqft of ground-floor commercial space.

In the loans section, I-RES, Ireland鈥檚 largest provider of private rental accommodation, has refinanced its 鈧�500m revolving credit facility in a deal that will leave its annual interest rate at 3.8%, unchanged from 2024. The new facilities were secured from Bank of Ireland Group, Barclays Bank Ireland and Allied Irish Banks, while ABN AMRO Bank has entered the syndicate as a new lender.

In two massive transactions this week, Norway鈥檚 sovereign wealth fund NBIM splashed over 鈧�900m to acquire stakes in a 拢2.7bn mixed-use portfolio in London鈥檚 Covent Garden, as well as in a 鈧�1.3bn AXA IM Alts-managed platform holding student housing and co-living assets in France and Spain. In Milan, Invesco Real Estate divested a 5,000sqm retail asset used as showroom by Louis Vuitton for 鈧�135m in a deal brokered by advisor C&W. The building was sold after a complete renovation which transformed the entire building.

Three funds raised capital this week. AXA IM Alts secured 鈧�660m of additional capital commitments for its European student housing strategy while Periskop launched a new development fund in Poland focused on building residential housing, student accommodation, and logistics facilities for small businesses. Private bank Hauck Aufh盲user Lampe announced the launch of its second healthcare property fund focused on Germany. The vehicle has a target volume of 鈧�150m.  

Assets on the market       
Asset Asset type Location Vendor Size Price (mln) Broker Key facts
Fetter Yard office - 86 Fetter Lane office London Europa Capital and Hobart Partners 100,000 ft2 拢90 (鈧�108) Savills The guide price would reflect a net initial yield of 6.5%.
The Whitmore Collection living Birmingham LGIM 220 homes 拢60 (鈧�72) NA The operational BTR asset comprises 220 homes and 7,500 sq ft of ground-floor commercial space.
24-28 Bloomsbury Way office London Aberdeen Investments 44,657 ft2 拢35.5 (鈧�42) Savills The asset is the headquarters for British advertising company WPP.
Notting Hill portfolio living London Fraser Real Estate 44 homes 拢18 (鈧�21.5) NA The portfolio generates an income of 拢575,388 per annum.
54 rue de Londres office Paris MEAG 4,758 m2 NA JLL The property has been completely renovated.
Life Science REIT life science UK Shareholders 603,400 ft2 NA Panmure Liberum The company, with a portfolio of 拢382m, is undertaking a strategic review including a potential sale or managed wind down.

 

Recently completed loans    
Lender(s) Borrower(s) Asset(s) Loan Size (mln) Key facts
Bond investors Kojamo Unsecured 鈧�500 The 7-year senior unsecured euro-denominated green bond matures in March 2032, and carries a fixed annual coupon of 3.875%.
ABN AMRO, Bank of Ireland, Barclays Bank Ireland, and Allied Irish Banks I-RES Resi portfolio 鈧�500 The facilities have a five-year term expiring in March 2030 with the option of two one-year extensions.
Undisclosed Study Inn Sites in Leeds, Leicester and Nottingham 拢72 (鈧�86) The loans bring the total secured facilities for the group to 拢153m.
Firma Partners Regal London The Clarendon Works office scheme 拢59 (鈧�70) The new loan replaces development finance on the scheme.
NLB Komercijalna Banka Beograd and Banca Intesa Beograd AFI Airport City East Gate Business Tower 1 鈧�60 The development will offer 27,000 m2 of office space in Belgrade.
Cheyne Capital Lone Star Hotel Metropole in Brussels 鈧�41 The loan helps finance part of the restoration and redevelopment of a hotel in Belgium.
NORD/LB Real Estate Finance Clarion Partners Europe Panattoni Park Tricity South 鈧�38.5 The facility is divided into 鈧�25m property financing and 鈧�13.5 VAT loan, with a term of five years and one year respectively.

 

Funds on the market   
Firm Fund Strategy Details
AXA IM Alts European Student Accommodation Strategy Investing in the European Purpose-Built Student Accommodation (鈥淧BSA鈥�) and co-living sectors. The company has secured 鈧�660m of additional capital commitments from a mix of new international institutional and sovereign wealth fund investors.
      The equity raising takes the total commitments to 鈧�1.3b.
Periskop Poland Second Periskop Poland Land Development Fund Focusing on acquiring large plots of land without existing building permits in key university cities such as Warsaw, Wroclaw, Krakow, Poznan, and the 鈥淭ri-City鈥� region. The fund鈥檚 target volume is 鈧�70m, with a planned term of five years.
      The vehicle will develop residential housing, student accommodation, and logistics facilities for small businesses.
Hauck Aufh盲user Lampe HAL Soziale Infrastruktur 2 Investing in medical and healthcare centres. The Art8 fund is focused on Germany, and the fund term is twelve years. The target volume is at least 鈧�150m.