Source: Sharecast
The deal values AIM-lised Life Science Reit, which last autumn said it would pursue a managed wind down, at 42.8p per share or £150m in total, a premium of around 21% to its closing share price on Tuesday.
British Land chief executive Simon Carter called the acquisition "an exciting opportunity".
He continued: "Our scalable platform will unlock significant synergies and attract a broader range of occupiers from the fast-growing science and technology sector than the previous life science mandate has allowed.
"The acquisition underlines our confidence in the long-term occupational fundamentals of the sector."
Since its market debut in 2021, Life Science has been buffeted by a number of headwinds, as higher inflation and interest rates led to a slowdown in leasing activity, weighing on investor sentiment. The share price has traded at a significant discount to net asset value since June 2022, leading the firm to eventually propose a managed wind down in November 2025 following a strategic review.
However, on Wednesday it said it believed a sale would provide a "superior outcome" for shareholders than a managed wind down.
Chair Claire Boyle argued it would deliver "greater and more immediate value, as well as the option to remain invested in the sector longer term under the umbrella of a larger and more diversified company while removing the uncertainty, market risk, illiquidity and frictional costs associated with a managed wind down of the portfolio".
Once the sale has completed, Life Science shareholders will hold 2.4% of the enlarged group and British Land investors the remaining 97.6%.