Phoenix turns UKCM/Picton merger plans to ash

UK Commercial Property REIT’s largest shareholder has blocked plans for a merger with rival REIT Picton. Phoenix Life, which owns about 43% of the FTSE 250 REIT, said it cannot support the plans on the terms proposed, leading UKCM to terminate negotiations with Picton. The Abrdn-managed FTSE 250 REIT said this morning: “UKCM has been informed by its largest shareholder that it does not support the possible merger on the terms proposed. Accordingly, UKCM has informed Picton that it is terminating discussions with Picton regarding the possible merger.” Insurance consolidator Phoenix Life is UKCM’s largest shareholder by some margin and has a strategic partnership with UKCM’s fund manager, Abrdn. UKCM’s initial portfolio was acquired from Phoenix in 2006. Earlier this month UKCM said it had been approached by Picton Property Income about an all-share merger, which would have united UKCM’s £1.32bn portfolio with Picton’s £761m portfolio. Under the plans, the merger would have been conducted on an EPRA NTA for EPRA NTA basis. Picton said it was “considering the feedback” that it has received from shareholders in both Picton and UKCM, following the announcement of merger talks on 8th November. It added that “a further announcement will be made in due course”. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews