Abrdn Property Income Trust (API) has agreed to sell the property portfolio of abrdn Property Holdings to GoldenTree Asset Management for £351m.
The portfolio, which comprises 39 assets, represents abrdn Property Holdings’ entire investment property portfolio, with the exception of its interest in land at Far Ralia, which API is actively marketing.
The sale price reflects a discount of 8% to API’s external valuation of the portfolio of £381.6m as at 30 June 2024.
Travelodge-owner GoldenTree has paid a cash deposit of £35.1m, with the balance payable in cash on completion, which is expected to take place on 29 November. Following completion, returns of capital will be made to API shareholders in cash, by way of a members’ voluntary liquidation.
On 28 May 2024, API shareholders approved an amendment to the company’s investment policy to implement a managed wind-down of abrdn Property Holdings’ portfolio. This would either entail the disposal of single assets, groups of assets or the entire portfolio.
Having considered all potential alternatives, the board of API said the sale to GoldenTree “represents an effective execution of the managed wind-down process” and “provides greater price certainty and quicker return of proceeds for API shareholders”.
James Clifton-Brown, chair of API, said: “Since the shareholder vote on 28 May 2024 to put the company into a managed wind-down was passed, the board, alongside the investment manager, explored the most effective means of disposing of the company’s assets. The aims were to maximise the returns to shareholders but also to return cash to them as soon as possible.
“The full range of disposal strategies was considered from individual property sales to a wider transaction. Through an independent agent, Gerald Eve, the whole portfolio was marketed to potential buyers in an extensive and competitive process.
“Following a second round of bids, the board considered the GoldenTree Asset Management bid provided the best solution for shareholders, compared with the net present value of what might be achieved by way of individual sales over a longer period and represents a swift implementation of the shareholder resolution to conduct a managed wind-down. I would like to thank the team at abrdn who have delivered this outcome for shareholders.”
