FTSE 250-listed LondonMetric Property has completed the acquisition of peer CT Property Trust (CTPT) in an all-share deal worth £198.6 mln (€230 mln).
A court hearing on 7 August approved the scheme to facilitate the deal. The acqusition was first mooted in May, when CTPT greenlit its takeover by LondonMetric.
LondonMetric issued 0.455 LondonMetric shares for each CTPT share, valuing its peer at 85.5 pence per share, and giving CTPT shareholders a 9.7% stake in LondonMetric.
As part of the takeover, 105.6 million new LondonMetric shares were issued.
According to LondonMetric, the acquisition adds a 'high quality and complementary portfolio of assets with significant asset management opportunities and strong rental reversion potential'. The firm added: 'It also offers material cost savings, economies of scale and an attractive debt structure, with the acquisition expected to be earnings accretive.'
Following the deal, LondonMetric's portfolio value has increased to £3.2 bn, generating some £160 mln of rental income per annum from a diversified occupier base.
The portfolio benefits from long average lease lengths of 11 years, very high occupancy of 99% and attractive rental growth prospects given its high weighting to urban logistics which accounts for 44% of assets.
Andrew Jones, chief executive of LondonMetric, commented: 'This opportunistic acquisition will benefit both sets of shareholders and provide greater liquidity.
'We will immediately begin to integrate the CTPT portfolio assets and work towards disposing of assets that are deemed non-core to our strategy.'
