Area A – in an area of approximately 19 dunams on which three buildings are built with a total area of approximately 135,000 square feet and which are fully leased with MHM leases of 6.6 years, to companies from the Life Science industry.
BE estimates that the buildings will yield from July 2021 an annual NOI of £ 3.3 million (£ 15 million). The value attributed to Area A of the total consideration for the purchase is estimated at around £ 62 million (NIS 279 million) and has future potential for doubling building rights within a few years.
Area B – In an area of approximately 14 dunams on which two buildings are to be demolished during the coming year, and new buildings for the Life Science industry are planned to be built in their place (subject to master plan approval), with a total area of approximately 130,000 square feet.
The value attributed to area B of the total consideration for the purchase is £ 35 million (NIS 158 million). BE estimates that the total expected construction cost (excluding the land component) will reach around £ 44 million (NIS 198 million) and the expected annual NOI that the project will yield at the end of construction during 2024 will reach around £ 4.5 million (20 million). NIS).
The purchase price will be financed through equity that Aloni Hetz poured into BE and through a bank loan at a rate of 60% of the purchase cost, which BE intends to take in the coming weeks.
Mr. Natan Hetz, CEO of Aloni Hetz, told FUNDER: “We are pleased to announce that BE has acquired another complex at Cambridge Science Park. This transaction is a continuation of acquisitions made by BE over the past year: the Oxford Business Park and an adjacent complex at Cambridge Science Park. In the field of Life Science – the field has gained momentum in the corona crisis and the demand for space on the part of the Life Science companies, mainly around university cities, is growing.
“Once the transaction is completed, Aloni Hetz’s lucrative activity in the Life Science field will account for approximately 30% of the company’s real estate investments in the UK and BE plans to continue to increase its hold in this field.”
The field of Life Science mainly includes companies engaged in advanced research, scientific development and production of medicines, devices and medical equipment.
The aggregate value of the 10 largest companies in the world in the field is over $ 2 trillion, with most (about 60%) being companies from the USA. Buildings intended to be used, among other things, by the Life Science industry include laboratories, research and development campuses, manufacturing sites and offices. Their construction costs are higher in light of the need to install advanced technical specifications and accordingly they usually yield higher rents compared to “regular” office buildings in those areas. Square and identical to the said market size in Boston USA.
Attached is the company announcement