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British Land Company (BLND) investor relations material
British Land Company M&A announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Deal rationale and strategic fit
Acquisition targets five well-located assets in the Golden Triangle, including sites in London, Oxford, and Cambridge, strengthening the science and technology platform and expanding the footprint in high-demand innovation clusters.
Diversifies and enhances the occupier base beyond life sciences to include AI, tech, green, and physical sciences, leveraging platform expertise and complementing the existing ecosystem.
Capitalizes on accelerating demand in the UK science and technology sectors, with AI and tech investment at record highs, offsetting softness in life sciences.
Provides Life Science REIT shareholders with diversified exposure to growth subsegments and access to a market-leading operating platform.
Addresses Life Science REIT's challenges from macroeconomic headwinds, persistent share price discount, and limited ability to raise capital.
Financial terms and conditions
Offer comprises 14.1p in cash and 0.07 new shares per target share, valuing each at 42.8p and the total equity at £150 million, representing a 21% premium to the prior closing price and a 15% premium to the 3-month VWAP.
Life Science REIT shareholders will own approximately 2.4% of the enlarged group post-completion.
GBP 150 million equity value funded 33% cash, 67% shares, with minimal impact on LTV; cash consideration funded from existing resources.
Acquisition price of GBP 276 million for assets with a GBP 333 million book value; offer at a 26% discount to unaudited EPRA NTA.
Life Science REIT shareholders receive liquidity and continued sector exposure.
Synergies and expected cost savings
Significant administrative and finance cost savings expected by integrating assets onto the acquirer's platform and refinancing at lower rates (4.5% vs. 6%).
Immediate EPS accretion from synergies, with further upside from lease-up of vacant space and capturing embedded reversion.
Substantial cost synergies from reduced admin expenses and cessation of management agreements.
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