The planned merger of real estate investment trusts could create a £4bn company and the fourth largest UK Reit, according to the companies involved.
Tritax Big Box, which focusses on large distribution centres, has reached an agreement with UK Commercial Property REIT on the terms of a possible all-share agreement.
The takeover of UK Commercial Property REIT's shares would cost £924mn and create the fourth largest REIT in the UK.
Under the possible deal, every UK Commercial Property shareholder would get 0.444 new Tritax shares for each share they hold.
In an announcement today (February 12), the boards said the deal would mean Tritax Big Box could expand into smaller logistics assets and would support it to work on new and existing investments and developments.
It read: "The possible offer would...establish a c.£6.3bn portfolio focused on high-quality UK logistics assets generating over £290mn of rental income per annum with significant embedded and growing rental reversion potential.
"[It would] form the fourth largest UK REIT based on market capitalisation, with a combined market capitalisation of c.£3.9bn, offering improved liquidity for all shareholders and expected associated cost of capital benefits."
It added that UK Commercial Property's board intends to recommend the offer to shareholders.
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
