Life Science REIT secures fresh five-year lease from Pro Cam

9th Oct 2024 08:58

(Sharecast News) - Life Science REIT announced on Wednesday that Pro Cam UK, an agri-tech business, has signed an agreement for a five-year lease at Cambourne Park Science & Technology Campus.

The London-listed firm said Pro Cam would occupy 4,300 square feet of space at building 2030, relocating from its current premises in building 2020, where it currently leased 7,400 square feet.

It said the new lease would commence on completion of Pro Cam's fit-out, expected in December.

Under the new terms, Pro Cam would pay £25 per square foot - an 8.2% increase from its current rent of £23.1 per square foot - with the rent rising to £30 per square foot in the fourth year of the lease.

The Life Science REIT board said the move would create additional opportunities for the company, as the space vacated in building 2020 was being repurposed into fully-fitted laboratories.

Those labs, set to be completed by the fourth quarter, were reportedly generating significant interest, with all four suites in active lease negotiations.

Life Science REIT reported a strong uptick in occupier interest at Cambourne Park in the second half, with over 90% of the 44,500 square feet of vacant space now under offer or in advanced negotiations.

The lab project was expected to deliver a yield on cost of around 7% and a profit on cost of approximately 25%.

"Pro Cam is a great example of the diversity of life science occupier we are attracting to the park, and supporting existing occupiers with their space requirements as they evolve, is a key element of our strategy," said Ian Harris, director of asset management at Life Science REIT's investment adviser, Ironstone Asset Management.

"Pro Cam's move also creates a future opportunity to do more fully fitted lab space, which delivers attractive returns for the company and further establishes Cambourne as a major life sciences destination."

At 0848 BST, shares in Life Science REIT were up 1.02% at 39.8p.

Reporting by Josh White for Sharecast.com.