AIM-listed UK property company Rugby Estates Investment Trust has said it has made a £ 17.2 mln (EUR 25.3 mln) conditional offer to acquire City Lands Investment Corporation (CLIC). The company says its offer has been recommended by the directors of CLIC and that, if successful, this will be Rugby Estate’s first acquisition since its £ 50 mln (EUR 73 mln) AIM listing in May. As reported by PropertyEU at that time, the company intends to become a real estate investment trust (REIT) once sufficient properties have been acquired to satisfy the requirements of the REIT tax regime.
AIM-listed UK property company Rugby Estates Investment Trust has said it has made a £ 17.2 mln (EUR 25.3 mln) conditional offer to acquire City Lands Investment Corporation (CLIC). The company says its offer has been recommended by the directors of CLIC and that, if successful, this will be Rugby Estate’s first acquisition since its £ 50 mln (EUR 73 mln) AIM listing in May. As reported by PropertyEU at that time, the company intends to become a real estate investment trust (REIT) once sufficient properties have been acquired to satisfy the requirements of the REIT tax regime.
Achieving REIT status will enable the contingent tax liability within CLIC, and those of any further acquisitions, to be extinguished on payment of an entry charge of 2% of the value of the Rugby Estates' property portfolio. CLIC is a privately owned real estate investment company which holds a portfolio of 24 retail, industrial and office properties throughout the UK. It has property assets of £ 37 mln (EUR 54 mln), net assets of £ 23.1 mln (EUR 33.9 mln) and a contingent tax liability if all the properties were sold of £ 2.8 mln (EUR 4.1 mln).
