London & Stamford Property and Metric are in advanced merger discussions that would see Metric founder Andrew Jones become chief executive of the combined group.
Patrick Vaughan, chief executive of London & Stamford, would become executive chairman of the combined group, while L&S chairman Raymond Mould would retire once the merger completes.
Under the terms discussed, Metric shareholders would own around 25% and London & Stamford shareholders approximately 75% of the enlarged group’s share capital. The companies also said they expected a significant return of capital to both sets of shareholders once the merger completes.
Jones, who spent 10 years at Pillar with Mould and Vaughan, said: “The proposed merger will create a larger REIT with scale, diversity and liquidity and brings together deep real estate knowledge, financial resources and management skills. Organisations across the world are deleveraging and we believe that this will continue to bring attractively priced assets to the market.
“We are excited by the prospect of being strongly positioned, with London & Stamford, to exploit these opportunities as they arise across the market.”
Mould said: “This potential transaction merges two terrific companies both with well-let property portfolios and reunites a highly experienced management team that has the proven ability to identify and crystallise value through opportunistic transactions. A combination of London & Stamford and Metric has the potential to create significant shareholder value for all parties and brings considerable benefits for both sets of shareholders.
“I am delighted to have this opportunity to hand over the keys of an excellent real estate portfolio to an experienced and well trusted team.”
damian.wild@estatesgazette.com
