Real estate investment trust Life Science has declared its intention to launch an initial public offering on London’s AIM market.
Life Science will launch an IPO by way of a placing, offer for subscription and intermediaries offer, targeting the issue of 300 million ordinary shares of £0.01 each in the capital of the company, at an issue price of 100p per share.
Admission is expected in mid-November and would make Life Science the first London listed real estate investment trust (REIT) focused on UK life science properties.
Life Science has appointed Ironstone Asset Management Limited as its investment adviser
The firm focuses on the ‘Golden Triangle’ area of Oxford, Cambridge and London St Pancras.
Assets located close to four of the world’s top ten universities for life science and global life science innovation should ensure strong potential for rental growth, Life Science said.
The company said it would invest in a diversified portfolio of properties across the country which are typically leased or intended to be leased to tenants operating in, or providing a benefit to, the life sciences sector.
This includes investment in wet and dry laboratories, offices and co-working space, manufacturing and testing facilities, and data centres.
Life Science has identified a £445m pipeline of projects of which around £305m is under exclusivity or in an advanced state of negotiations.
It is targeting a net asset value total return in excess of 10 per cen per year and an initial dividend yield of 4 per cent. per annum. It intends to grow to 5 per cent per year in the early years.
Claire Boyle, chair of Life Science, said: “Quality Life Science Properties are centred on a small number of key geographic locations in the UK where supply is constrained, demand is high, vacancy is low and rents are rising, offering attractive opportunities for investment.
“The REIT will offer both institutional and retail investors a differentiated investment opportunity with strong underlying asset backed fundamentals that seeks to provide regular income with capital growth.”