This is mostly to raise the entry for new purposes, and it is interesting to see how much investors are in demand. Life Science REIT is the first REIT in the London market focusing on the characteristics of Life Science.
R & D by medical companies and the increase in spin -offs from universities means that appropriate space is demanding and there is no shortage. Many new properties on the market are found before the tenant is completed. In the next 20 years, it is estimated that an additional office and experimental space with up to 20 million square feet will be required.
Life Science REIT invests in real estate that already has tenants. It provides immediate income and provides other dedicated real estate in development. This is useful for the increase in medium -term NAV.
4 % of the yield of 4 % is targeted based on the issuance price, and 5 % per year is growing. This is an attractive investment for those who are looking for growing yields, combined with the growth of stock prices.
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Life Science REIT (LON: Labs)
Real estate investment focusing on life science
www.lifeSciencereit.co.uk
Market: Purpose
Subscription, arrangement, and offers of intermediaries
Floating date: November 19, 2021
Publishing price: 100P
Procured amount: up to 300 million pounds
Cost: up to £ 6 million
Market capitalization: Up to 300 million pounds
Nominated advisor: Panmure Gordon
Broker: Panmure Gordon
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What does it do?
Life Science REIT was established in July 2021, investing in Oxford, Cambridge and London’s real estate, and has a life science business and organization as a tenant. Real estate is approaching universities, hospitals, and pharmaceutical companies, and is lacking in high quality space.
Properties include research institutes, manufacturing facilities, offices, and data centers. Most real estate is a combination of office and laboratory. Oxford’s rent is catching up with the rent in Cambridge, and they continue to increase.
IRONSTONE Asset Management is an newly established Life Science REIT investment advisor. The annual advisory fee is £ 500 million to 1.1 % of NAV.
There is a potential pipeline with a total of 445 million pounds, exclusive or advanced negotiations with these investments of £ 355 million. The latter numbers include £ 220 million, 5 % and £ 85 million pounds. The procured cash must be invested within 6 months.
Finance
The Life Science REIT has a target of £ 300 million, but can raise up to £ 350 million through offer and arrangement. Based on 300 million pounds, the company wants to achieve 10 % of the year in the middle of the year.
Considering the real estate in which the investment manager negotiates the purchase, the top ten tenants may donate 54 % of the revenue. In general, tenants are good and there should be no problem to pay rent.
Estimated NAV is 98p per share after cost. The continuous annual cost is about 4.2 million pounds. Borrowing is used to buy more properties. The loan to value is 30 % to 40 %.
The first dividend covers the entry period until June 2022. After that, there are two dividends every year.
director
Claire Boyle (chair)
Annual membership fee: NA
Dr. Sally Four Sise
Annual membership fee: NA
Michael Taylor
Annual membership fee: NA
Shareholder
Companies involved in intermediaries are interactive investors, AJ Bell, Equinity, Jerbis Invision Management, and Red Main Bentley.
