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Warehouse giant Tritax Big Box has finalized an agreement to acquire UK Commercial Property REIT (UKCM) for £924 million. The amalgamation of these two entities is poised to create a real estate behemoth valued at nearly £4 billion.
Over the weekend, industry reports from React hinted at Tritax Big Box’s proposal for an all-share merger with its London-listed counterpart, UKCM.
Tritax Big Box boasts a significant portfolio comprising numerous large warehouses strategically located near motorways, with key tenants including Ocado, Amazon, and B&Q. On the other hand, UKCM, though smaller in scale, holds investments in shopping centers, office buildings, and distribution centers.
According to Tritax, the merger will consolidate a real estate portfolio predominantly focused on the logistics sector, with a combined value of approximately £6.3 billion. The proposed valuation for UKCM stands at 71.1p per share, representing a 10.8% premium over its closing share price on Friday.
The rationale behind the deal, as articulated by Tritax, is to merge complementary logistics-oriented investment portfolios, aiming at resilient and expanding income streams. Moreover, the merger is expected to enhance the overall customer offering by providing a diverse range of logistics assets, from ‘Mega-Boxes’ to strategically located smaller facilities in key urban areas.
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By Proptechbuzz
By Ravi Kumar
