Investment trust Life Science REIT has completed the acquisition of Oxford Technology Park (OTP) in a deal worth up to £183 million.
The recently-opened 20-acre science and technology park which will eventually have 450,000 sq ft of mixed-use life science space and amenities, was sold by Angus and Alicia Bates of Oxtec Developments, who have owned and developed the park since 2007.
The purchase price of £120.3m includes OTP’s debt of £33.8m and the buyer will also provide up to £62.7m of forward funding to complete the build-out. That work will continue to be managed by the developer until practical completion.
The park is designed for flexibility required by life science operators for laboratory, production, offices and amenities. Unit sizes range from 6,000 sq ft – 50,000 sq ft. Headline rents are £16 – £20 per sq ft for hybrid space and £28 per sq ft for offices.
The first two of OTP’s 11 units are complete with one fully let to The Native Antigen Company at a headline rent of £16 per sq ft. Five further units are due to be completed during 2022 and the final four during 2023. The acquisition also includes a completed hotel, let to Premier Inn until 2045.
Oxtec Developments reports strong interest in all of the buildings currently under construction.
Life Science REIT’s portfolio ranges from let properties to major conversion opportunities and new build developments in Oxford, Cambridge and London.
Simon Farnsworth, managing director of Ironstone Asset Management, which advised Life Science REIT, said: “There is virtually no new supply of this type, size and quality of space in the Oxford catchment and we are delighted to have secured such an important and strategic asset of scale for our shareholders.
“It has been great to work with Angus and his team whose vision and hard work has resulted in this opportunity to provide state of the art space for new and established businesses in the area. We look forward to creating a thriving hub of innovation in this perfectly situated asset for the rapidly growing Oxford life science community.”
OTP, which is close to Oxford Airport is within two miles of Begbroke Science Park.
Mr Bates said: “Taking the vision to create OTP fifteen years ago through to the successful high-tech park that is now evolving has been challenging and hugely fulfilling, providing a unique product to the Oxford science community.
“We are thrilled to be handing the reins over to Life Science REIT and their experienced management team to take the park forward to the next stage.”
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