Life Science REIT has received “a significant amount of interest” from potential buyers, four months after hoisting the ‘for sale’ sign.
In a stock market update on its strategic review and sale process, the company said certain parties have now been granted access to additional due diligence materials and meetings with investment adviser Ironstone Asset Management. The board is also still weighing up the likely return to shareholders that could be delivered in a managed wind-down.
The company’s net tangible assets across its five-site portfolio were £232.1m at the end of June, down by 11% since December. Life Science REIT said this reflected “the continued challenging backdrop overall together with slower than anticipated leasing activity in the life science market”.
The company has rethought some planned developments with leasing challenges in mind. At Oxford Technology Park, it has agreed with developer Oxtec to amend the design of the final assets, buildings 10 and 11, to offer seven smaller units rather than two large ones. The company said the smaller units are likely to lease faster and for higher rents.
It added that its banks “continue to be supportive” during the strategic review, agreeing a waiver for a “minor technical covenant breach”.
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