FTSE 100-listed REIT LondonMetric Property has made an offer worth £674m for Urban Logistics REIT.
If the proposal goes through, Urban Logistics shareholders would receive 0.56 LondonMetric shares and 42.8p in cash for each Urban Logistics share they currently own.
The value of the bid represents a 17% premium to Urban Logistics’ closing share price on 10 April.
Urban Logistic’s board has been under pressure recently after a group of investors, including recently-launched activist Achilles Investment Company, served a requisition notice to vote on removing the current chair and two directors.
The board said that if a firm offer was made, it would recommend the bid to shareholders.
Meanwhile, the directors have paused the proposal put forward in March to internalise the investment trust’s management arrangements. The board said it will also ask the activist investors to pause their requisition while the sale process is ongoing.
LondonMetric has a history of acquiring other REITS in recent years, having completed a deal for the £1.9bn LXI REIT in January 2024. Six months prior, the firm completed the acquisition of the £200m CT Property Trust.