‘Golden triangle’ property investor Life Science REIT is to wind down four years after a £350 million IPO in London.
The firm invested in properties across London, Cambridge and Oxford which were then leased to tenants operating in the life science sector.
Following a strategic review and formal sale process that commenced in March – and following several offers for the company – it has decided to wind down operations over the coming 12-18 months.
Launched on the London Stock Exchange during the COVID pandemic, Life Science REIT’s £350m IPO was oversubscribed amid the hype over the potential of the life sciences sector, which primarily spills out of major universities.
Less than four years later, its share price has fallen by 61% as the influx of tenants slowed.
The drop forced the company into a strategic review, where the board and its advisers considered a complete sale, selling the company’s portfolio or subsidiaries, changing its investment strategy or commencing a managed wind-down.
It received a number of non-binding offers for the company or its assets and commenced talks with several of these parties following due diligence access.
However it has concluded with its advisers that shareholders would benefit more from a managed wind-down of its portfolio.
Realisations may take the form of disposals of single assets, groups of assets or the portfolio as a whole. It is anticipated that the realisation of the portfolio will be concluded over a 12-18 month period, depending on, amongst other things, the prevailing market environment.
“Further to a detailed strategic review, and following consideration of the alternative options available, the board believes that a managed wind-down will maximise value for shareholders and is in the best interests of shareholders,” said Claire Boyle, chair of Life Science REIT plc.
“The board would like to thank the company’s shareholders for their significant patience and support during this challenging period.”
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