Listed UK commercial property investor Ediston Property Investment Company (EPIC) is selling its entire property portfolio to Realty Income for around £200.8m (€234.5m) following a strategic review.

Back in March this year, EPIC, which focuses on the retail warehouse sector, announced the strategic review in response to “several challenges that had been facing the company for some time”.

At the time, the company said the challenges included low levels of liquidity in the ordinary shares; constraints on the company’s ability to diversify across larger schemes in the retail warehouse market due to the relatively small size of the company; and cost inefficiencies from operating a subscale company.

EPIC said it considered a wide range of proposals, along with continuing in its current form, and concluded that a sale of the entire portfolio was the ”best course of action to maximise shareholder value”.

EPIC said it has agreed to sell its entire portfolio comprising 11 retail warehouse assets located across the UK to a subsidiary of Realty Income. The 1.18m sqft portfolio is let to 64 tenants over 108 units. 

The London-listed company said it intends to seek shareholder approval for the voluntary liquidation of the company if the disposal becomes unconditional.

William Hill, chairman of Ediston Property Investment Company, said: “Having considered multiple options, and after detailed analysis, the board determined a sale of the entirety of the property portfolio to Realty Income was the best means of maximising shareholder value.”

Hill said the board unanimously considers the disposal to be in the best interests of the company and its shareholders as a whole and recommends that shareholders vote in favour of the resolution at the general meeting.

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