LondonMetric Property PLC (LSE:LMP) is set to acquire Urban Logistics REIT PLC (AIM:SHED, OTC:PCILF), the property group focused on ‘last mile’ infrastructure, in a cash and shares transaction, valuing the deal at £698.9 million.
It prices the acquisition at 150.3p per Urban Logistics share.
In a recommended offer Urban Logistics shareholders will receive 0.5612 new LondonMetric shares and 42.8p in cash for each share they own. They will own around 11% of the combined group.
LondonMetric said the deal will result in a £7.3 billion portfolio focused on logistics, convenience, healthcare, entertainment, and leisure, with the combined group expected to benefit from operational synergies and scale efficiencies.
"This is an excellent transaction that grows our urban logistics platform and supports our triple net strategy,” said LondonMetric chief executive Andrew Jones.
“Urban warehousing remains our strongest conviction call for organic rental growth across the UK real estate market.”
Jones added: "We have a demonstrable track record of successfully executing on M&A, and we expect the transaction will deliver substantial synergies, cost savings and accelerated earnings growth.”
Urban Logistics shareholders will also be paid a final interim dividend of 4.35 pence per share.