Urban Logistics pitches alternative Abrdn takeover

Urban Logistics has urged the board of Abrdn Property Income Trust to reconsider its takeover proposals and for API shareholders to reject an agreed merger with Custodian Property Income REIT. Urban Logistics has until 5pm on 20 March to make an offer for API. As well as an all-share proposal, it has now published details of an alternative proposal that would see it acquire the net assets of API related to logistics and retail warehouse assets, with the net assets related to API’s residual portfolio – offices, leisure properties, retail properties and forestry assets – remaining held by API and, through a managed wind-down process, cash being returned to shareholders. “The board of Urban Logistics believes that the alternative proposal represents a superior structure for API shareholders as a whole to the Custodian Property Income REIT offer given its mix of Urban Logistics shares and cash realisations,” Urban Logistics said. It added: “Urban Logistics contends that it is in the interests of API shareholders to call a halt to the merger with Custodian and urges the board of API to actively focus on the Urban Logistics alternative proposal which will give API shareholders an ongoing equity market exposure to a focused, high-performing REIT as well as cash proceeds from a managed wind-down of the minority of API’s net tangible assets.” “A productive dialogue between the boards of Urban Logistics and API and their respective advisers has been underway since the original indicative offer was announced,” Urban Logistics said. “Urban Logistics and its advisers have carried out significant legal, property, financial and tax due diligence, as well as a comprehensive inspection of the API properties. In turn, API has been carrying out its own due diligence on Urban Logistics.”