British Land Agrees Deal to Acquire Life Science REIT

British Land (BLND.L) announced it has agreed a cash and share offer deal to acquire Life Science REIT (LABS.L), valuing the entire issued and to-be-issued share capital of Life Science REIT at approximately £150 million.

The acquisition is structured as a scheme of arrangement under Part 26 of the Companies Act 2006. This move signals British Land's strong conviction in the Science & Technology sector's long-term potential.

Under the terms of the acquisition, Life Science REIT shareholders will receive 14.1 pence in cash and 0.07 new British Land shares for each Life Science REIT share held. Based on British Land’s closing share price of 410.0 pence on January 27, 2026, the deal values each Life Science REIT share at approximately 42.8 pence, representing a 21% premium to its closing price on the same day. However, this also represents a 26% discount to Life Science REIT's unaudited EPRA NTA as of December 31, 2025.

British Land aims to leverage its platform to achieve cost synergies and immediate earnings per share accretion in an EPRA NTA per share neutral manner. Furthermore, they plan to target a broader range of Science & Technology tenants, expanding beyond Life Science REIT's previous focus. The company anticipates significant earnings accretion through capturing reversion and leasing recently completed space.

The Life Science REIT portfolio, situated within the “Golden Triangle” of Oxford, Cambridge, and London, includes five assets with a complementary tenant roster. These assets have demonstrated mid-single-digit ERV growth in recent years and boast an 8% net reversionary yield. British Land sees a compelling opportunity to grow its Science & Technology footprint through this acquisition.

Life Science REIT shareholders will hold approximately 2.4% of the enlarged group immediately following completion, while existing British Land shareholders will hold the remaining 97.6%. Life Science REIT shareholders are expected to be eligible for the British Land final dividend for the year ending March 2026.

Driver Breakdown:

• Synergies: British Land expects to achieve cost savings by integrating Life Science REIT's portfolio onto its existing asset management platform.
• Tenant Expansion: The acquisition allows British Land to target a wider range of Science & Technology occupiers, potentially increasing occupancy rates and rental income.
• Strategic Location: Life Science REIT's portfolio is located in the high-demand “Golden Triangle,” offering strong growth potential.

The Life Science REIT Directors, advised by Panmure Liberum, consider the terms of the Acquisition to be fair and reasonable and intend to recommend that Life Science REIT Shareholders vote in favor of the Scheme.

Claire Boyle, Chair of Life Science REIT, stated: “The Life Science REIT Board now believes that the Acquisition will provide a superior outcome for Life Science REIT Shareholders, delivering greater and more immediate value, as well as the option to remain invested in the sector longer term under the umbrella of a larger and more diversified company.”

Simon Carter, Chief Executive of British Land, commented: “The acquisition of Life Science REIT represents an exciting opportunity for British Land to drive value from a well-located Golden Triangle portfolio…The Acquisition underlines our confidence in the long-term occupational fundamentals of the Science & Technology sector.”

The acquisition is expected to be completed within three months, subject to shareholder approval and regulatory conditions. The markets will be watching closely to see how British Land integrates the Life Science REIT portfolio and executes its strategy for the Science & Technology sector.