abrdn Property Income Trust Limited (API) has confirmed it is in advanced talks with funds managed by GoldenTree Asset Management to sell abrdn Property Holdings (APH).
APH is a wholly-owned subsidiary that holds most of API’s property assets.
API plans to sell its entire investment portfolio, comprising of 39 assets, except for a land parcel at Far Ralia, valued at around £10 mln (€12 mln).
The agreed price for the purchase of the portfolio is £351 mln (€421.6 mln), representing a discount of 8.0% on API's estimated value of the portfolio as of 30 June.
GoldenTree has made a £35.1 mln (€42.1 mln) cash deposit and will pay the remaining balance upon completion of the deal. Additionally, API’s loan agreement with RBS will be transferred in full to GoldenTree.
The trust is aiming for a single, large transaction as part of a managed wind-down process announced in May that involves selling its assets gradually, either individually or in groups, to repay debt and return capital to shareholders while maximizing asset value.
The deal is expected to close on 29 November 2024.
However, API has emphasized that there is no guarantee a sale will happen, and the terms of any potential deal are still uncertain.
As part of its divestment policy, API sold four assets in Q2 and Q3, totaling £27.0 mln (€32.4 mln).
