British Land has agreed a £150m deal to acquire Life Science REIT. Under the terms of the cash and share deal, each Life Science REIT shareholder will receive 14.1p in cash and 0.07 shares in British Land.
Following completion of the acquisition, Life Science REIT shareholders will hold approximately 2.4% of the enlarged group.
As at 31 December 2025, Life Science REIT’s portfolio comprised five assets located in the Golden Triangle, valued at approximately £332.6m including £27.1m of development assets, all of which are located at Oxford Technology Park. The portfolio also includes two prime Central London assets within the Knowledge Quarter, a 13-acre value-add campus in Cambridge and a small single-let asset in Cambridge.
In November last year, Life Science REIT shareholders approved the adoption of a new investment objective and investment policy in relation to the managed wind-down of the REIT.
Claire Boyle, chair of Life Science REIT, said: “Since IPO, Life Science REIT has built a portfolio of assets in the UK’s dominant innovation clusters, occupied by dynamic science and technology businesses. Whilst retaining its conviction in the original life sciences investment policy, factors beyond Life Science REIT’s control, in particular higher inflation and elevated interest rates, have led to a slowdown in leasing activity and negatively impacted investor sentiment for the life science sector, restricting its ability to scale, which have impacted on both operational and share price performance. At the same time, whilst the longer-term structural drivers remain intact, the sector has suffered from a subdued venture capital and follow-on funding climate.
“Having previously announced that it would pursue a managed wind-down, the Life Science REIT board now believes that the acquisition will provide a superior outcome for Life Science REIT shareholders, delivering greater and more immediate value, as well as the option to remain invested in the sector longer term under the umbrella of a larger and more diversified company whilst removing the uncertainty, market risk, illiquidity and frictional costs associated with a managed wind-down of the portfolio.”
Simon Carter, chief executive of British Land, added: “The acquisition of Life Science REIT represents an exciting opportunity for British Land to drive value from a well-located Golden Triangle portfolio. Our scalable platform will unlock significant synergies and attract a broader range of occupiers from the fast-growing science and technology sector than the previous life science mandate has allowed.
“The acquisition is immediately earnings accretive from synergies alone, is NTA neutral, and has scope for further significant earnings growth from the lease-up of high quality newly delivered space at Oxford Technology Park. The acquisition underlines our confidence in the long-term occupational fundamentals of the science and technology sector, and our ability to deliver attractive returns by focusing on sectors where we have deep expertise and a clear competitive advantage.”
