Life Science REIT moots sale or wind-down

Life Science REIT is considering a potential sale or wind-down of the company following an 11% decline in net tangible assets over the past six months, totaling £232.1 mln (€267.5 mln) as of June 30.

Rolling Stock Yard

The drop in the value of its five assets is attributed to outward yield movement, particularly for vacant properties, reflecting challenging market conditions and slower-than-expected leasing activity in the life science market.
Despite a slight increase in contracted rent and occupancy rates, the company has engaged with potential buyers and is evaluating a possible sale while also considering a complete wind-down to maximize shareholder returns. 
Life Science REIT also reported a minor technical breach of the projected interest cover ratio, for which a waiver has been agreed with its lending banks, who remain supportive during the strategic review.
In other developments, the company signed leases with four new occupiers, is redesigning buildings at Oxford Technology Park to increase rental value, and anticipates completion of the Nexus café and amenity site in Q4 2025. 
The investment trust specializes in properties related to the life science industry and holds assets in the key UK locations of Oxford, Cambridge, and London.