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LondonMetric Property PLC Property PLC on Wednesday announced completion of its merger with LXi REIT PLC, as well as the £13.0 million purchase of a property development and sales of non-core assets. LondonMetric shares were up 3.0% at 191.45 pence in London on Wednesday morning. LXi shares have been de-listed and cancelled, as the merger scheme of arrangement has taken effect. LondonMetric said the merger of the two real estate investment trusts became effective on Tuesday, with 943.0 million new LondonMetric shares admitted to trading early on Wednesday. LondonMetric, a FTSE 250 index constituent, now has assets of more than £4 billion. LondonMetric also completed its purchase of LXi REIT Advisors Ltd. ‘The merger is a transformational deal that creates the UK’s leading triple net lease REIT with full occupancy and exceptional income longevity and certainty of income growth,’ said Chief Executive Andrew Jones. ‘The new larger business will deliver better liquidity, material economies of scale, substantial cost savings with improved terms in both debt and equity markets. ‘Our enlarged balance sheet will also allow better access to new opportunities of scale, which will drive accelerated earnings and dividend progression.’ LondonMetric also on Wednesday said it has exchanged on an off-market acquisition of a 213,000 square feet logistics development in Crewe, England for £13.0 million. Marshall CDP, the developer, will take a three-year leaseback and pay rent of £1.5 million per year. LondonMetric also announced the sale of another two non-core assets for £5.9 million, a B&Q retail unit in Burnley and a vacant office in Halesowen. The company has therefore sold £184 million of assets so far in the year to March 31. Moreover, LondonMetric said it has added £3.3 million per year in rent through agreeing 66 rent reviews and lettings since its first half year. CEO Jones said his company ‘will continue to reposition parts of the portfolio with an emphasis on growing our exposure to logistics which remains our strongest conviction call and is delivering high organic rental growth’. The Crewe acquisition, he added, ‘is an excellent example of an innovative transaction that leverages our strong relationship with the developer and offers an attractive return profile’. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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