Investor to scale back holdings following £350m public offering four years ago
Life Science REIT, a property investor focused on the life science sector, has announced plans to wind down its operations. The decision comes after a detailed strategic review and formal sale process that began in March.
The company, which was launched on the London Stock Exchange during the COVID-19 pandemic with a £350 million IPO, has faced challenges in recent times. The share price has fallen by 61% since its launch, attributed to a slowdown in the influx of tenants.
Claire Boyle, chair of Life Science REIT plc, expressed gratitude to shareholders for their significant patience and support during this challenging period. In a statement, she said, 'This decision is in the best interests of shareholders.'
The wind-down decision was made after Life Science REIT considered various options, including a complete sale, selling the company's portfolio or subsidiaries, changing its investment strategy, or commencing a managed wind-down. The board concluded that a managed wind-down will maximize value for shareholders.
The wind-down process may take the form of disposals of single assets, groups of assets, or the portfolio as a whole. The company invested in properties across London, Cambridge, and Oxford, leasing them to tenants operating in the life science sector.
During the strategic review, the company received several non-binding offers for the company or its assets and initiated talks with several parties following due diligence access. However, the search results do not provide information on which parties offered themselves during the formal sales process of Life Science REIT or which parties began discussions with the company after the completion of due diligence.
The wind-down is anticipated to be concluded over a 12-18 month period, depending on market conditions. The decision for a managed wind-down does not appear to be related to the CEO stepping down at Pets at Home or the issuance of a profit warning at that company.
This development marks a significant change for Life Science REIT, which has been a key player in the life science property market. The wind-down process is expected to be closely watched by investors and industry observers alike.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
