Oxford Biomedica to sell and leaseback its facility for £60 million
Oxford Biomedica is selling its Windrush Court facility to Kadans Science Partner for £60 million.
The sale proceeds of £60 million exceed the target offer figure of £55 million that the Company previously announced it was seeking with completion due to occur this week.
As a result, the Company's cash position is expected to further strengthen to more than £150 million . The current net book value of the Property is approximately £7.9 million.
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Kadans have granted Oxford Biomedica an occupational lease of the Property for 15 years at a rent of £3.5 million per annum rising to £4.7 million per annum after five years, with a market rent review at 10 years.
The Windrush Court facility is a c.75,000 sq ft building consisting of state-of-the-art laboratories as well as extensive office space which the Company have developed over the past 8 years. The facility houses the Company's Analytical Services Group and Process Research & Development functions.
Stuart Paynter, Chief Financial Officer of Oxford Biomedica, said: "We are pleased to have exchanged contracts for the sale and leaseback of our state-of-the-art Windrush Court facility and look forward to building a relationship with Kadans, the European leader in the development and management of life sciences buildings and ecosystems. The proceeds of the transaction will enhance our net cash position, providing us with additional financial flexibility as we build our leadership as an innovation-led CDMO across all viral vectors for cell and gene therapy."
James Sheppard, Managing Director (UK & Ireland) of Kadans, commented : "We are delighted to secure this tremendously important asset in the Oxford ecosystem. Oxford Biomedica is one of the world's leading companies in cell and gene therapy, an area of deep specialism for Kadans, and we look forward to building a relationship with the team."
Oxford BioMedica acquired the freehold of the Windrush Court office and laboratory facilities in 2014, paying £3.2 million.
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