FTSE 250-listed Reit LondonMetric Property and LXI Reit are in talks over a possible merger, the boards of both trusts have announced.
Should the deal go through, LondonMetric will acquire the £2.1bn LXI in an all-share merger.
In a stock exchange announcement, the boards said they “see the potential to bring together two companies with complementary strategic approaches and a key focus on delivering compounding income-led total shareholder returns through the cycle”.
As per London Stock Exchange rules, LondonMetric has until 5pm on 15 January to either announce a firm intention to make an offer or to walk away.
In August, LondonMetric Property completed the acquisition of CT Property Trust in a £198.6m deal.
The trust owns £3bn of assets across 16.5m square feet, which generates £143m contracted rental income per year, according to the LondonMetric website.