Life Science REIT acquires building in London's Knowledge Quarter

Real estate investment trust Life Science has acquired 7-11 Herbrand Street, an iconic Art Deco building close to University College Hospital and University College London in the capital's Knowledge Quarter.

Life Science purchased the building for £85.0m in cash, excluding acquisition costs, reflecting a net initial yield of 4.42% based on the underlying net passing rent of £59.85 per square foot.

The AIM-listed firm said the property, currently let to British fintech firm Thought Machine, represented "an ideal opportunity" for development as a major life science asset given its close proximity to a number of major academic institutions, healthcare organisations, and "innovative" companies.

Life Science has already undertaken a feasibility study to determine the building's suitability for lab conversion.

As of 0905 BST, Life Science shares were up 0.24% at 103.0p.

Reporting by Iain Gilbert at Sharecast.com