Wichford in early merger talks with Redefine Intl

UK real estate companies Wichford and Redefine International (RI) have confirmed they are in the early stages of merger talks. Both companies are listed on London's junior AIM market.

Wichford owns 75 properties occupied by central or local government bodies in the UK, five in Germany and one each in France and the Netherlands. The portfolio is valued at about £580 mln (EUR 684 mln). RI, a hybrid property investment company with a market capitalisation of approximately £230 mln, currently owns a 21.7% shareholding in Wichford. RI's ultimate parent company, Redefine Properties Limited, which is listed on the Johannesburg Stock Exchange in South Africa, indirectly owns a shareholding in Wichford Property Management Limited, Wichford's property manager.

On Monday, Wichford said that it appointed Rothschild to assist in reviewing the strategic direction of the company, including assessing interest expressed by RI in a potential combination of the two companies. 'Conversations with RI are at an early stage and there can be no certainty that any transaction between Wichford and RI will be forthcoming or that the required regulatory approvals for a transaction would be obtained,' the company said.