British Land Announces Recommended £150 Million Acquisition of Life Science REIT

British Land’s £150 million move on Life Science REIT – here is what you need to know

British Land has agreed a recommended cash and share offer for Life Science REIT, to be implemented via a court-approved scheme of arrangement. Each Life Science REIT Shareholder would receive 14.1 pence in cash plus 0.07 new British Land shares per Life Science REIT share.

Using British Land’s closing price of 410.0 pence on 27 January 2026, the package values each Life Science REIT share at about 42.8 pence, implying an equity value of roughly £150 million. That is a 21% premium to the undisturbed price, but a 26% discount to Life Science REIT’s unaudited EPRA NTA of 57.7 pence per share as at 31 December 2025.

Headline term	Detail
Consideration per Life Science REIT share	14.1p cash + 0.07 new British Land shares
Implied value (at 410.0p BLND)	c.42.8p
Equity value	c.£150 million
Premium to 27 Jan price (35.4p)	c.21%
Premium to 3‑month VWAP (37.3p)	c.15%
Discount to EPRA NTA (57.7p)	c.26%
Post‑deal ownership	Life Science REIT holders c.2.4% of the enlarged group
Dividend	Eligible for British Land’s expected final dividend for year to March 2026

Strategic logic – British Land doubles down on Science & Technology

British Land is leaning into its campus strategy by expanding its Science & Technology footprint in the “Golden Triangle” of London, Oxford and Cambridge. The Life Science REIT portfolio adds five complementary assets: two prime Central London properties in the Knowledge Quarter, a modern 24‑acre Oxford Technology Park, a 13‑acre value‑add campus in Cambridge, and a small single‑let Cambridge asset.

British Land points to strong market fundamentals, growing occupier demand, and its recent leasing momentum with innovation tenants. Notably, the lab-heavy portion of the Life Science REIT portfolio is relatively small – around 48,000 sq ft (less than 6% by floor area) and more than 80% let – which gives British Land flexibility to broaden the tenant mix beyond pure life sciences into wider Science & Technology demand.

Earnings accretive now, more upside later

British Land expects the deal to be immediately earnings per share accretive from cost synergies and EPRA NTA per share neutral. By bringing the portfolio onto British Land’s platform and ending the external management arrangements, it sees “substantial” administrative cost savings. Over time, further earnings accretion should come from capturing reversion (rent uplift towards ERV) and leasing vacant space, particularly newly delivered, affordable space at Oxford Technology Park where asking rents are £20‑£25 per sq ft.

What this means if you own Life Science REIT shares

This is a clean exit route from a company already in a managed wind‑down. You get a mix of cash and highly liquid FTSE 100 paper, with the option to stay exposed to the sector via British Land or sell in the market post completion. The offer has support: irrevocable undertakings and letters of support cover an aggregate 31.1% of Life Science REIT’s issued share capital, plus the directors’ small holdings (c.0.03%).

The board acknowledges the offer is below EPRA NTA, but says recent indicative asset bids were unattractive and that the proposal compares well once you factor in execution risk, time, frictional costs and illiquidity of a piecemeal wind‑down.

Pros and cons for Life Science REIT investors

• Positives: 21% premium to the undisturbed share price and 15% to the 3‑month VWAP; part cash; the rest in British Land shares with materially higher liquidity and dividend capacity; eligibility for the expected British Land final dividend for the year to March 2026.
• Negatives: sale at a c.26% discount to 57.7p EPRA NTA; share price upside from asset-level leasing and reversion passes to British Land; your stake in the enlarged group will be small at around 2.4% in aggregate.

What this means if you own British Land shares

This is a bolt‑on at a modest group scale, targeting assets that fit British Land’s campus strategy. Management says the deal is immediately earnings accretive and NTA neutral, with further upside from leasing and reversion. It is funded from existing cash resources, so no new debt or equity raise is flagged in the announcement.

The risk side is largely executional: leasing up recently delivered space at Oxford Technology Park, maintaining rental growth, and integrating the assets seamlessly. The life science market was more muted in 2025, though British Land aims to widen the occupier net to broader Science & Technology users. On guidance, British Land reiterates expected EPS growth of 3‑6% per annum in coming years with at least 6% for the year ending 31 March 2027, and a dividend policy to pay 80% of underlying EPS.

The portfolio by the numbers

• Portfolio value: c.£332.6 million as at 31 December 2025, including £27.1 million development assets at Oxford Technology Park.
• Contracted rent roll: £18.74 million; ERV: £26.5 million.
• Net reversionary yield: 8%.
• WAULT: 4.6 years (weighted average unexpired lease term).
• Location mix by value: c.41.4% London, 40.4% Oxford, balance Cambridge.
• Lab space: c.48,000 sq ft, less than 6% by floor area, over 80% let.

How the scheme of arrangement will work and the expected timetable

The acquisition is via a scheme of arrangement. In plain English, Life Science REIT shareholders vote at a Court Meeting and General Meeting. The scheme needs approval by a majority in number who vote, representing at least 75% in value of the shares voted. A Court sanction then follows. Once effective, the deal binds all shareholders.

• Scheme Document: expected within 28 days of the announcement.
• Shareholder meetings: expected in March 2026.
• Completion: the parties expect the scheme to become effective within three months of the announcement, subject to conditions.
• De‑listing: Life Science REIT shares will be de‑listed the Business Day after the scheme becomes effective and the company will be re‑registered as private.
• Dividends: Life Science REIT shareholders are expected to be eligible for British Land’s final dividend for the year ending March 2026. Any Life Science REIT dividend declared before completion may reduce the offer value pound for pound.
• Fractional entitlements: fractions of new British Land shares will not be issued. Fractions will be aggregated and sold, with proceeds distributed, though amounts under £5 per holder are retained by the enlarged group.

My view – a pragmatic premium for LIFE, a focused add‑on for BLND

For Life Science REIT holders, this looks pragmatic. You get a material premium to a depressed share price, part cash up front, and liquid exposure to a sector leader. Yes, it is below EPRA NTA, but the board’s case that a wind‑down carried value and timing risk is credible, especially with recent asset bids described as unattractive.

For British Land, this is a tidy way to scale its Science & Technology offer at an attractive entry point. Immediate EPS accretion from cost savings and NTA neutrality are positives. The real prize is leasing up Oxford Technology Park and capturing reversion across the portfolio. The risks are standard integration and leasing execution, rather than balance sheet stretch.

What to watch next

• Scheme Document within 28 days – look for detailed synergy mechanics and any updated valuation data.
• Shareholder votes in March 2026 – note the 31.1% of support already signalled via undertakings and a letter of intent.
• Leasing at Oxford Technology Park – progress on take‑up at £20‑£25 per sq ft will underpin the earnings accretion story.
• British Land dividend timeline – final dividend expected to be declared in May 2026 and paid in July 2026.
• Any counter‑proposal – none disclosed, but undertakings allow for a higher competing bid scenario in certain cases.

Jargon buster

• Scheme of arrangement: a court-approved process to acquire a company with set voting thresholds.
• EPRA NTA: an industry measure of net asset value that focuses on long term tangible assets.
• ERV: estimated rental value – the market rent the space could achieve when fully let.
• Reversion: uplift in rent as contracted rents move towards ERV over time.
• WAULT: weighted average unexpired lease term – a measure of income duration.