LondonMetric Property and LXi are in merger talks that could create the fourth-largest real estate investment trust on the London market with a market capitalisation of £3.85bn.
The companies confirmed earlier press reports that they are in talks over an all-share deal that would see LondonMetric acquire LXi’s shares.
“The boards of LondonMetric and LXi see the potential to bring together two companies with complementary strategic approaches and a key focus on delivering compounding income-led total shareholder returns through the cycle,” they said.
The companies would have a combined portfolio valued at some £6.4bn, based on the valuations in their most recent sets of results. Their combined market capitalisation would be £3.85bn, which would make the enlarged company the fourth largest REIT behind SEGRO, Landsec and Unite Students.
The companies said a tie-up would “provide improved share liquidity and better access to capital”.
The largest chunks of LXi’s portfolio are in healthcare (23%), hotels (21%) and leisure (19%). LondonMetric’s largest sector is urban logistics, accounting for 43.2% of the portfolio.
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