Railpen confirms £29m Oxford life sciences acquisition

Property comprises five buildings spanning 74,823 sq ft

Building, Office Building, Car

 

  • What Railpen has confirmed its £29m acquisition of Eastpoint Business Park in Oxford from AEW UK REIT
  • Why The park will be repositioned into a laboratory-led asset
  • What next Development expected to meet significant demand for life sciences space in the city

Railpen has confirmed its £29m acquisition of Eastpoint Business Park in Oxford from AEW UK REIT, as revealed by React News last week.

The investment manager, which is responsible for the safekeeping and administration of over £37bn in assets under management for several pension schemes, plans to reposition the 74,823 sq ft park to create a flagship laboratory-led asset. This is expected to help meet the significant demand from occupiers for life sciences space in the city, while delivering strong returns for Railpen’s members.

Eastpoint Business Park, which comprises five buildings, is located two miles south-east of Oxford city centre and close to Oxford Business Park and Oxford Science Park.

Two buildings of 14,119 sq ft and 12,815 sq ft are let to Genesis Care until 2033 and 2043 respectively, at average passing rents of £13.10/sq ft. The remaining three buildings are either vacant or let on short-term leases, meaning it is possible to progress a refurbishment quickly.

The pension fund’s property portfolio includes a range of regional and London-based developments. Combined with its existing holdings in Cambridge, Railpen has a significant presence in the Oxford-Cambridge arc.

Alistair Dawson, senior asset manager at Railpen, said: “We have been actively pursuing investment into the life sciences sector in Oxford, a global geographic leader in scientific research, and were able to move quickly once the right asset became available.

“Eastpoint met all our criteria to deliver enhanced returns to our members through strategic acquisitions; it is in a prominent location in a city that is oversubscribed with demand yet undersupplied with quality stock, and the site has great development potential. Combined, these factors mean that under our ownership, it will become even more important to occupiers seeking space in Oxford’s life sciences sector.”

TT&G Partners acted for AEW. DTRE acted for Railpen.

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