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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, to strengthen the science and technology platform and capitalize on UK innovation sector growth.
Diversifies and enhances the occupier base beyond life sciences to include AI, tech, green, and physical sciences, leveraging platform expertise for occupancy and income.
Addresses Life Science REIT's macroeconomic challenges and limited capital-raising ability, providing shareholders with diversified exposure and access to a market-leading platform.
Capitalizes on record AI and tech investment, offsetting softness in life sciences and supporting long-term sector growth.
Financial terms and conditions
Offer comprises 14.1p in cash and 0.07 new shares per target share, valuing each at 42.8p, a 21% premium to the prior close and 15% above the 3-month VWAP.
Total equity value is £150 million, funded by approximately £49 million cash and £101 million in new shares, with minimal impact on LTV.
Acquisition price of £276 million for assets with a £333 million book value; Life Science REIT shareholders will own about 2.4% of the enlarged group.
Represents a 26% discount to unaudited EPRA NTA.
Immediate EPS accretion from synergies, with further upside from lease-up and reversion.
Synergies and expected cost savings
Significant reduction in administrative and finance costs by integrating assets onto the acquirer's platform and refinancing at a lower debt cost (4.5% vs. 6%).
Immediate earnings accretion from existing rent roll and cost synergies, with further upside from letting vacant space.
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