Life Science REIT PLC Attractive Debt Refinancing (7435R)

TIDMLABS

RNS Number : 7435R

Life Science REIT PLC

03 March 2023

3 March 2023

LEI 13800RG7JNX7K8F7525

Life Science REIT plc

("Life Science REIT" or the "Company")

Attractive Debt Refinancing

Drawdown of RCF to repay existing asset level debt materially reducing Company blended interest costs

Life Science REIT (LSE: LABS), the real estate investment trust focused on UK life science properties, announces that it has refinanced its existing GBP35.9 million asset level development debt facility, which was acquired with the Company's Oxford Technology Park ("OTP").

The Company's development debt facility acquired with Oxford Technology Park carried a high interest rate and had an expiry date of June 2023. The Company has refinanced this facility by drawing down GBP26.3 million from its existing GBP150 million HSBC facilities as well as utilising existing cash resources.

The HSBC facilities include a GBP75 million fully drawn term loan capped at a maximum cost of 4.25% per annum until March 2025, and a GBP75 million RCF facility with a cost of SONIA plus 2.25%. Following this refinancing GBP48.7 million remains available in the revolving credit facility for future use and the Company's look forward and blended interest cost is expected to reduce by approximately 100bps.

The additional drawdown is secured against the Company's acquisitions at Herbrand Street in London, Lumen House near Oxford and the Merrifield Centre in Cambridge. The Company's asset at OTP is now unsecured and available for alternative use in the Company's future debt management strategy.

The pro-forma Gross Loan to Value after the refinancing, based on the last reported property portfolio valuation at 30 June 2022, is 24.5%.

Simon Farnsworth, Managing Director of Ironstone Asset Management Ltd, the Company's Investment Adviser, said:

"We have taken the opportunity to repay the outstanding OTP debt earlier than the termination date in June 2023 prudently using the Company's existing HSBC facility to minimise interest and debt facility management costs following the lapse of significant early redemption penalties. Additionally, this will provide the potential for further refinancing of OTP in the near future."

Enquiries:

 
 Link Company Matters Limited - Company 
  Secretary 
 labs_cosec@linkgroup.co.uk 
 
 Ironstone Asset Management - Investment 
  Adviser 
 Simon Farnsworth                                 via Buchanan below 
 
 Panmure Gordon (UK) Limited - Joint Corporate 
  Broker                                          +44 20 7886 2500 
 Alex Collins / Chloe Ponsonby /Tom Scrivens 
 
 Jefferies International Limited - Joint 
  Corporate Broker                                +44 20 7029 8000 
 Tom Yeadon / Andrew Morris / Oliver Nott 
  / Harry Randall 
 G10 Capital Limited - AIFM                       +44 20 7397 5450 
 Verity Morgan-Jones / Paul Cowland 
 
 
   Buchanan - Financial PR                          +44 20 7466 5000 
 Mark Court / Henry Wilson / Verity Parker 
 LifeSciencereit@buchanan.uk.com

Notes to editors

Life Science REIT plc is a specialist property business focused on the UK's growing life science sector. The Company's portfolio of assets is located across the "Golden Triangle" of research and development hubs in Oxford, Cambridge and London's Knowledge Quarter and its strategic vision is to become the property provider of choice for life science companies in the UK.

Life Science REIT is addressing the acute demand-supply imbalance for laboratory space in the "Golden Triangle", which is characterised by low vacancy rates and prime rental increases. The UK life science sector itself is benefiting from a buoyant early-stage funding environment, driving demand for laboratory space.

The Company's diverse portfolio of assets ranges from a 20-acre science park currently under development through to fully let buildings, with an important part of the Company's strategy being the conversion of existing properties to laboratory space.

The Company's investment policy is focused on capital growth whilst also providing a growing level of income.

Life Science REIT trades on the Main Market of the London Stock Exchange under the ticker LABS.

Further information is available at https://lifesciencereit.co.uk . To sign up for email alerts, please visit https://lifesciencereit.co.uk/investors/ .

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