UK landlord LondonMetric and real estate investment trust LXi have announced that they are in preliminary discussions about an all-share merger.
The merger would create the UK's fourth-largest listed REIT by assets, with a gross asset value of £6.4 bn (€7.4 bn) and market capitalization of £3.9 bn (€4.5 bn).
The merger would offer attractive returns for investors through economies of scale, diversified investments in resilient sectors, and a stronger market presence.
LondonMetric focuses on logistics and grocery-anchored income, while LXI invests in diverse sectors like healthcare, budget hotels, and even theme parks.
The merged entity would boast a portfolio of properties, of which 93% invested in sectors like logistics, healthcare, and leisure, ensuring long-term income and stability. Additionally, internal management would allow for cost savings and optimizations.
A firm offer from LondonMetric depends on fulfilling specific conditions, including due diligence, lender approvals, and LXi's board recommending the merger to its shareholders.
LondonMetric must either announce an offer for LXi or announce its withdrawal by 15 January 2024. This deadline can only be extended with the Panel on Takeovers and Mergers approval.
