Jones Lang LaSalle


LaSalle Investment Management Buys Third Science Park in United Kingdom
February 24, 2006

By Marshall Taylor, European Correspondent

LaSalle Investment Management of London this week bought its third science park in the United Kingdom, Langstone Technology Park in Havant, near Portsmouth, for £54.3 ($94.6 million U.S.) from Langstone Property Holdings BV. Fasset, which developed the park from an old IBM facility, will maintain a financial interest in the park and continue to manage it.

That role is key to the success of science parks in the United Kingdom, Andrew Bull, fund manager at LaSalle, told CPN. "Fasset has managed the property specifically to the needs of the occupiers that include Lockheed Martin and Xyrata," he said. "The typical science park occupier is not interested in the property at all and wants the landlord to sort out the need for more space, renovations and paying electricity bills, (among others)."

Langstone Technology Park (pictured) has 17 tenants in its 640,695 square feet of space on 40 acres, primarily devoted to computer technology and telecommunications. The reported initial yield is 7 percent.

LaSalle has invested nearly £100 million ($174.4 million U.S.) to acquire Langstone, along with Kent Science Park, which specializes in life and chemical sciences and Wilton City Science Park concentrating in petrol and carbon sciences, Bull said. "There is more life science experimentation with stem cell research in the United Kingdom than in America, so we expect more United States companies to locate here."

He added that LaSalle plans to invest further in this property niche, which has national and regional government support. The United Kingdom government spends about £20 billion ($34.9 billion U.S.) for research and development, with plans to increase it. "Though there are no tax incentives for the property, science park occupiers get a favorable tax regime," he noted. "There also is government grant support."