British Land has made a formal proposal to acquire Life Science REIT (LABS) in a deal worth approximately £150 million, according to company disclosures.
The offer equates to a per-share value of 42.8 pence for LABS. That figure is composed of 14.1 pence in cash plus 0.07 new British Land shares for each LABS share. On a comparison basis, the proposed price is 21% above LABS' most recent share price of 35.4 pence and 15% higher than its three-month volume-weighted average price of 37.3 pence.
The bid sits materially below LABS' EPRA Net Tangible Assets, representing a 26% discount to the EPRA NTA of 57.7 pence reported as of December 31.
Board support and shareholder position
LABS' board has recommended that shareholders accept the offer. Irrevocable acceptances have already been obtained from holders representing 31.1% of LABS' shares. Under the terms set out, following completion of the acquisition LABS shareholders would own around 2.4% of the enlarged British Land group. They are also expected to be eligible for British Land's final dividend for the 2026 financial year, subject to the usual conditions.
Portfolio metrics and asset-level issues
The LABS portfolio is stated to be valued at 3300 million, with a rent roll of 26.5 million.
The asset mix is compact, concentrated across five properties. One of these is a 27 million development in the Oxford Technology Park that is suffering delays tied to costly redesign work. The ongoing conversion of larger units into smaller units has resulted in weaker leasing performance for that project.
Another holding in Cambourne has been reclassified down to a secondary business park, with an associated write-down recorded by the manager. Both of these assets sit roughly 10 miles from the central cores of Oxford and Cambridge respectively.
Sector impact
- Real estate investment trusts (REITs): consolidation in the specialist life-science property segment and potential balance-sheet adjustments.
- Development and leasing markets: implications for lease-up prospects on schemes converting unit sizes, and for valuation of secondary business parks.
- Regional office and business park markets around Oxford and Cambridge: localised asset performance may influence investment and leasing dynamics.