LondonMetric set to acquire property trust for £198.6m

LondonMetric has reached an agreement to acquire the entire issued share capital of CT Property Trust (CTPT).

The real estate investment trust is set to acquire the Columbia Threadneedle-managed property trust for approximately £198.6m, with the deal coming into effect in early July.

LondonMetric said it believes the acquisition will create a combined portfolio with a value of £3.3bn with a total annual rental income of £163.4m

The portfolio will consist mainly of industrial and distribution assets, however both LondonMetric and CTPT manage a number of retail assets, particularly out-of-town solus units.

As of March 31, CTPT’s assets consisted of 34 properties valued at around £288.3m. This consists partly of 21.9% retail warehousing and 6.4% high street assets. The trust also had approximately £30.8m cash at this point.

Davina Walter, chair of CTPT, said: “This acquisition by LondonMetric allows our shareholders to benefit from being exposed to an enlarged UK-REIT with an approximately £3 billion property portfolio, continuously growing dividends and an outstanding track record of shareholder value creation. The acquisition also represents a compelling premium to the CTPT Share Price. We therefore recommend the acquisition to shareholders.”

Patrick Vaughan, chairman of LondonMetric, said: “The acquisition grows the combined group’s exposure to the winning sectors of urban logistics and long income, underpinned by evolving consumer demand and delivering strong rental growth.”

CTPT directors were advised by Panmure Gordon regarding the acquisition.