Custodian Property Income Reit sets timetable for API merger despite rival bid

Custodian board expects API to maintain its recommendation for all-share merger

REITs real estate investment trust investing home housing houses 3d background.


Custodian Property Income Reit has set out a timetable for its potential merger with Abrdn Property Income, despite a rival bid from Urban Logistics Reit.

Earlier today (22 February), API postponed a general and court meeting to decide on the all-share offer it had agreed with Custodian in January while it assesses its options.

David MacLellan, chair of Custodian, said: “We acknowledge the API board’s requirement for time to assess the potential options. We firmly believe that the rational conclusion of this assessment would be to maintain its recommendation for the all-share merger with Custodian REI.

“This will benefit both sets of shareholders by creating a well-positioned Reit of enhanced scale, with the opportunity to participate in the returns from the two complementary portfolios, with a fully covered and sustainable dividend.”

Custodian also set out its timetable for moving forward with the potential merger. It will consult shareholders on the deal on 19 March, the day before API will hold its postponed general and court meeting.

The trust then anticipates a sanction hearing to be made in late March, before Custodian shares are issued to API shareholders in early April and the merger is completed.

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