The Wellcome Trust has made a £506m (€551m) cash offer for UK property developer and investor Urban&Civic.

Wellcome is offering to pay Urban&Civic shareholders 345 pence for each share held, an offer which represents a 63.5% premium to the Urban&Civic share’s last closing price of 211p.

The acquisition, which is being implemented by a court-approved agreement and shareholders approval, is expected to be completed early next year.

Urban&Civic is a master developer and has completed over 660 plots for housebuilders. The company’s portfolio includes the 1,425-acre Alconbury Weald site in Cambridgeshire, the 1,170-acre RadioStation Rugby and the 794-acre Manydown Basingstoke site.

Peter Pereira Gray, managing partner and CEO of the investment division of Wellcome, said: “We are very pleased to announce this recommended offer, which is fully aligned with our existing strategy of investing in businesses over the long term.

“The offer by Wellcome for Urban&Civic represents a compelling value proposition for Urban&Civic’s shareholders at an attractive and certain value in cash today, reflecting the high quality of the business, its people and its future prospects.

“We know the Urban&Civic business and its experienced management team from our recent joint venture together.”

Alan Dickinson, chairman of Urban&Civic, said: “The acquisition provides a persuasive outcome for all stakeholders. A cash offer above up-to-date NAV outperforms the FTSE 350 Real Estate Index by some 70% since listing in 2014 and secures returns for our loyal and supportive specialist shareholder base, much of which has been with us for the whole journey.”

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