Alternative Income REIT minimises impact of Meridian Steel wind up

Alternative Income REIT PLC on Thursday said it is conducting normal end of lease extension discussions regarding three industrial units it lets to Meridian Steel Ltd, which has reportedly started a process to wind up its business.

The London-based real estate investment trust said the three properties, in Dudley and Sheffield, England, represent 10% of its total annualised gross passing rent at £800,000 a year.

AIRE noted a recent press report that Meridian Steel has started a process to wind up the business.

Meridian Steel is a subsidiary of Duferco International Trading Holding SA, part of the wider industrial firm Duferco Group.

AIRE said it has the benefit of a parent company guarantee from Duferco for the properties.

The leases on the properties all expire on May 21, 2027, and normal end of lease discussions have started about extending the leases on the properties, AIRE noted.

The company confirmed that all rent due on the properties was paid in full for the quarter ending September 28, 2026, and there will be no impact on its financial results for its current financial year to the end of June.

Due to the parent company guarantee, AIRE expects "minimal impact" on its rental income for financial 2027.

It added that the valuations of the properties at the end of March has been prepared on the assumption that the leases on the properties would terminate in May 2027.

AIRE added: "The properties are currently let on rents which are below market rates and therefore, if and when the company gets vacant possession of these properties, there is the potential to re-let the properties at higher rates reflecting current market rents."

Shares in AIRE were down 3.0% at 68.26 pence on Thursday afternoon in London.

On Wednesday, AIRE said it was considering a sweetened takeover offer from Glenstone REIT PLC, but that the new offer remained below its net asset value at the end of March.

Glenstone last month announced its firm intention to make a 70 pence per share cash offer for AIRE, which valued the latter at approximately £56.4 million.

AIRE said it had "many reasons" not to recommend the 70p-per-share offer, pointing out that it was 17% lower than AIRE's net asset value per share of 84.4p at March 31, and on Monday Glenstone upped its offer by 2.0% to 71.4p per share, or £57.5 million in total.

Glenstone said the sweetened bid is "final" - it will only consider increasing the offer if another suitor swoops in with a competing bid.

It responded to Glenstone and said, after accounting for the payment of dividends, the higher offer still represented "a negligible premium" to its closing price of 69.7p at May 14.

Copyright 2026 Alliance News Ltd. All Rights Reserved.