Urban Logistics Reit has tabled an offer to rival Custodian Property Income Reit’s proposed acquisition of the £198m Abrdn Property Income Trust (API).
Custodian had announced an agreement with API over an all-share merger on 19 January, subject to shareholder approval.
The Urban Logistics board said its offer comes at a 13% premium to the proposal tabled by Custodian and a 23% premium to API’s price at the time the Custodian deal was announced in January.
Its offer is worth approximately 59.2p per API share, adjusted downwards for the 2.45p Urban Logistics special dividend.
This compares to the Custodian offer which stands at approximately 52.4p per API share based on Custodian’s 67.29p share price at close on 19 February.
The Urban Logistics board added the two trusts had “highly complementary portfolios”, with only 9% of the combined portfolio outside logistics and retail warehouses.
The £607m Urban Logistics Reit currently trades at a 20.6% discount, according to the Association of Investment Companies.
