The boards of LondonMetric Property and LXi REIT are in discussions about a possible all-share merger of the two companies.
Under the terms of the deal, LondonMetric would acquire the entire issued and to be issued ordinary share capital of LXi to create a UK REIT with a gross asset value of approximately £6.4bn and a market cap of approximately £3.9bn.
In a statement, the companies said that they saw “potential to bring together two companies with complementary strategic approaches and a key focus on delivering compounding income-led total shareholder returns through the cycle”.
The combined portfolio would have an approximate 93% exposure to the logistics, healthcare, convenience, entertainment and leisure sectors, which provide “income longevity and security”, and the internally-managed REIT would deliver economics or scale and operating efficiencies, “targeting sustainable earnings and dividend progression”.
LondonMetric must either announce a firm intention to make an offer for LXi or announce that it does not intend to make an offer no later than 5pm on 15 January 2024.
