Picton backs GBP404 million LondonMetric-SREIT takeover
Picton Property Income Ltd on Friday agreed to a recommended all-share takeover by a consortium comprising LondonMetric Property PLC and Schroder Real Estate Investment Trust Ltd, in a deal valuing the real estate investment trust at around £404 million.
Under the terms of the acquisition, Picton shareholders will receive 0.190 of a LondonMetric share and 0.894 of an SREIT share for each Picton share held.
Based on Thursday's closing prices, the offer values each Picton share at 78.7 pence, representing a 7.0% premium to Picton's closing price of 73.5p and a 9.9% premium to its three-month volume-weighted average price.
Picton shares rose 2.2% to 75.13 pence in London on Friday morning for a market cap of £386.4 million.
LondonMetric shares were 0.1% lower at 197.90p, giving the company a £4.65 billion market capitalisation, while shares in Schroder Real Estate Investment Trust fell 1.1% to 45.40p for a £222.1 million market cap.
Following completion, Picton shareholders are expected to own around 4.0% of the enlarged LondonMetric and 48.4% of the enlarged SREIT.
The consortium has secured irrevocable undertakings representing 12% of Picton's issued share capital, including support from the Picton board and TR Property Investment Trust PLC.
The companies expect the court-sanctioned scheme of arrangement to complete in early September, subject to shareholder and regulatory approvals.
LondonMetric Chief Executive Andrew Jones said the acquisition "adds high quality and reversionary assets" while providing Picton shareholders with "two quality listed platforms with better share liquidity, greater income granularity and material earnings and dividend accretion."
Separately, Picton released a trading update for the quarter ended June 30, reporting EPRA net tangible assets of 101.5p per share, down from 102.2p at the end of March. Total return for the quarter eased to 0.2% from 0.7%.
The company declared an interim dividend of 0.69p per share for the April-to-June quarter, adding that the payment is in addition to the takeover consideration.
Picton said its like-for-like portfolio valuation rose 0.4% to £702.3 million during the quarter. Occupancy was unchanged at 84%, while it completed seven lettings generating £0.7 million of annual rent and disposed of a non-core industrial asset for £1.2 million, 30% above its March valuation.
Post quarter-end, Picton said it had a leasing pipeline worth £2.0 million of annual rent, 93% of which relates to industrial assets.
Copyright 2026 Alliance News Ltd. All Rights Reserved.