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Tritax Big Box to Acquire UK Commercial Property REIT

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Tritax Big Box has recently announced that it has reached a significant agreement to acquire UK Commercial Property REIT. The all-share offer will value the company at approximately £924 million. Under the terms of the deal, UK Commercial Property investors will receive 0.444 new ordinary Tritax shares for each UK Commercial Property (UKCM) share held. As a result, stakeholders of UKCM are estimated to own approximately 23.3% of the enlarged company.

The possible offer represents an appealing opportunity for UKCM shareholders, with a value of 71.1 pence per share. This amounts to an attractive premium of 11% over the closing price of 64.2 pence on Friday, based on Tritax’s current share price of 160.2 pence.

The decision to make this offer comes after thorough discussions and negotiations between the two companies. Should a firm offer be made, UKCM’s board intends to recommend the deal to its stakeholders. As a show of support, Tritax has already received non-binding letters of intent from existing shareholders, representing 56.5% of UKCM’s share capital, expressing their willingness to vote in favor of the acquisition.

Both Tritax and UKCM believe that this potential offer holds significant strategic and financial value. The combined portfolio will reach an impressive valuation of GBP6.3 billion, primarily focused on logistics assets in the UK. This merger provides extensive opportunities for asset management, capital recycling, and positions the resulting entity as the fourth largest real estate investment trust by market capitalization in the UK.

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