Hong Kong's CK Asset Holdings has made an offer to take over 100% of the shares in a UK REIT.
In an announcement late on Tuesday, the company said it was offering 80 pence per share for Civitas Social Housing, translating to a £485 mln (€557 mln) transaction.
Shares closed on Wednesday at 79.9 pence. They have fallen from a peak of 120 pence in August 2021.
The Chinese group is attracted to the social housing company for its steady income and stable returns, according to a director.
Civitas Social Housing has 697 properties in the UK.
In a statement, HK Asset Holdings said it regarded Civitas as one of the leading social housing providers in the UK and its social impact and earnings profile were complementary to its investment criteria and make for a suitable strategic fit.
‘Underpinned by steady income and stable returns, Civitas Social Housing PLC fits well within our investment criteria and adds to our global real estate portfolio,’ said Chiu Yue-seng, head of special projects to media.
CK Asset Holdings is an investment vehicle of Li Ka-shing.
It is no stranger to big ticket UK real estate deals. Among its largest purchases tp date has been 5 Broadgate in London for €1.1 bn in 2018, which it duly sold last March for €1.4 bn to Korea’s NPS.
