Forming a £1bn portfolio REIT: B&C assists Custodian Property Income REIT's £237m acquisition of API

06/02/2024

We're delighted to have helped with shareholder documentation for Custodian Property Income REIT's £237m all-share merger with abrdn Property Income trust.

The merger, if approved by shareholders, will see the trusts combine to form a REIT with a £1bn portfolio with over 200 assets across the UK.

Commenting on the merger, Custodian Reit chair David MacLellan, chairman of Custodian said: “In the current interest rate environment, security and resilience of cash flows, scale and liquidity, supported by a clear and compelling strategic direction are the defining characteristics of a successful Reit.”

James Clifton-Brown, chair of API, added: “API has always sought to focus on delivering attractive, income-driven returns for shareholders.... The merger will enable API Shareholders to retain exposure to the portfolio and its growth prospects at a significant premium to API’s share price, with the prospect of superior share liquidity and an enhanced and fully covered dividend... The API Board believes that, with increased scale and an enhanced capital structure, the combined group will be well positioned for the future.”

If you'd like to find out how we can ensure the success of your most prestigious Funds projects, chat with us today: hello@blackandcallow.com

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