Life Science REIT is exploring options to offload a stake of up to 50% in its £140m Oxford Technology Park.
The company is understood to be seeking off-market offers from potential investors that will allow it to stay in control of the expansion and operation of the park but bring in fresh capital to plough into the development of its portfolio.
The REIT has been mapping out growth options through potential joint ventures and other investment partnerships as an alternative to raising new equity.
The company bought the 20-acre park in May 2022 for £120.3m plus debt of £33.8m and proposed to invest up to £62.7m to complete the park’s build-out. The value of the asset has risen by about 16% over the past year.
Once fully developed, which is targeted by mid-2025, it will comprise up to 497,600 sq ft of mixed-use office, life science, industrial and amenities space.
Last week, the REIT appointed CBRE to raise the park’s global profile. The consultancy will work alongside existing leasing agent on the park, Bidwells, to fill about 130,000 sq ft of completed workspace and the upcoming 96,000 sq ft.
Elsewhere, the company is looking for the capital to invest into the expansion of Cambourne Park Science and Technology Campus in Cambridgeshire, where it has multiple buildings coming to the end of their use.
The partial disposal of Oxford Technology Park would echo the sale of Lumen House on Harwell Science and Innovation Campus in Oxford in November 2023.
The asset was sold for £7.7m to bring forward 10,000 sq ft of fully fitted labs on the ground floor of Building 2020 at Cambourne Business Park. The transaction is expected to bring more attractive returns over the long-term, balancing the short-term loss of rental income from the disposal.
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