Urban Logistics REIT has made a rival bid for Abrdn Property Income Trust, weeks after the latter agreed an all-share merger with Custodian Property Income.
The logistics-focused REIT said it had tabled an indicative proposal to API’s board, citing “compelling reasons” for a share-for-share merger.
These include in-depth knowledge of API’s circa £315m industrial and retail park portfolio, for which Urban Logistics said it would have “bid on all or any one of them had they come up for sale privately”, and a favourable macro backdrop for logistics real estate.
A merger between API and Urban Logistics would create a FTSE 250 company with a market value of around £830m. Some 9% of the combined portfolio would consist of properties outside of logistics and retail warehousing.
The offer values API’s shares at around 59.2p each, based on its share price of 128.6p at close on 19 February. Urban Logistics said it reflected a premium of around 13% to Custodian’s offer, representing a “superior proposal”.
Custodian’s offer stands at around 52.4p per API share, according to Urban Logistics, based on its share price of 67.2p at close on 19 February.
The logistics REIT added that, through the offer, API shareholders would be able to access its portfolio at a more than 20% discount to its own net asset value.
Urban Logistics said it had written to API requesting the postponement of its shareholder vote regarding the proposed Custodian merger to “allow for Urban Logistics and API to complete their respective due diligence and to give the opportunity for a firm Urban Logistics proposal to be put to both Urban Logistics and API shareholders”.
“Given the focused business strategy and strong asset management track record of Urban Logistics, the company’s directors believe that API shareholders should be given the opportunity to compare the two propositions in detail,” the REIT added.
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