Life Science REIT has acquired 7-11 Herbrand Street, an iconic Art Deco building close to University College Hospital and University College London in London’s Knowledge Quarter for £85 million.
The purchase price reflects a net initial yield of 4.42% based on the underlying net passing rent of £59.85 per square foot, the REIT said.
The entire building is currently let to Thought Machine, one of the UK’s leading fintech companies, until October 2026.
The property, which currently comprises Grade A office space, totals a net internal area of 67,097 square feet on four floors with a partial basement, and represents an ideal opportunity for development as a major life science asset.
It is situated in close proximity to a number of major academic institutions, healthcare organisations and innovative companies including University College London, University College Hospital, the Francis Crick Institute and the Oriel project (a future world leading eye hospital, research and education centre due to open in 2026).
The property is well-located for access to Euston, King’s Cross, St Pancras and Tottenham Court Road transport hubs with Russell Square tube station just 100 metres away.
Life Science REIT has now deployed more than £262 million of total capital since its IPO, representing c. 75% of the net proceeds raised at IPO.
Simon Farnsworth, Managing Director of Ironstone Asset Management Ltd, the Company’s Investment Adviser, said:
“We are delighted to have secured such a major acquisition for the company in London’s Knowledge Quarter. The important location and prominent size of the asset, along with attractive physical characteristics such as a large floor to ceiling height, represent outstanding potential for conversion into a leading long-term life science property.
“The transaction represents further progress in the deployment of our IPO proceeds, which are now approximately 75% invested and I am pleased to report that the Company’s near-term acquisition pipeline remains extremely attractive.”