News

Travelodge owner GoldenTree picks up API portfolio

News

Samantha McClary

27 September 2024

Investment/finance

Travelodge owner GoldenTree Asset Management is buying the entire share capital of Abrdn Property Holdings, a wholly owned subsidiary of Abdrn Property Income Trust in a £351m deal.

The purchase includes all but one asset that make up the portfolio – API’s land at Far Ralia, the 3,688-acre estate in the Cairngorms that API is selling separately through Knight Frank for around £12m.

GoldenTree has paid a cash deposit of £35m to API for its 39-strong investment portfolio. The remainder will paid upon completion of the deal on 29 November.

The US investor’s offer for the portfolio represents an 8% discount to API’s last valuation of the properties and a 12.7% discount to its NAV per share at 30 June.

The sale follows a failed takeover of API by Custodian REIT earlier this year and the subsequent managed wind-down of the API business.

API said this deal followed an “extensive and competitive process” to identify a buyer for the portfolio in an effort to balance the objectives of maximising returns for shareholders against the timeframe for disposals.

API chair James Clifton-Brown, said: “Since the shareholder vote on 28 May 2024 to put the company into a managed wind-down was passed, the board, alongside the investment manager, explored the most effective means of disposing of the company’s assets. The aims were to maximise the returns to shareholders but also to return cash to them as soon as possible. The full range of disposal strategies was considered from individual property sales to a wider transaction.

“Through an independent agent, Gerald Eve, the whole portfolio was marketed to potential buyers in an extensive and competitive process. Following a second round of bids, the board considered the GoldenTree Asset Management bid provided the best solution for shareholders, compared with the net present value of what might be achieved by way of individual sales over a longer period and represents a swift implementation of the shareholder resolution to conduct a managed wind-down.”

The deal is expected to complete on 29 November.

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Travelodge owner GoldenTree Asset Management is buying the entire share capital of Abrdn Property Holdings, a wholly owned subsidiary of Abdrn Property Income Trust in a £351m deal. The purchase includes all but one asset that make up the portfolio – API’s land at Far Ralia, the 3,688-acre estate in the Cairngorms that API is selling separately through Knight Frank for around £12m. GoldenTree has paid a cash deposit of £35m to API for its 39-strong investment portfolio. The remainder will paid upon completion of the deal on 29 November. The US investor’s offer for the portfolio represents an 8% discount to API’s last valuation of the properties and a 12.7% discount to its NAV per share at 30 June. The sale follows a failed takeover of API by Custodian REIT earlier this year and the subsequent managed wind-down of the API business. API said this deal followed an “extensive and competitive process” to identify a buyer for the portfolio in an effort to balance the objectives of maximising returns for shareholders against the timeframe for disposals. API chair James Clifton-Brown, said: “Since the shareholder vote on 28 May 2024 to put the company into a managed wind-down was passed, the board, alongside the investment manager, explored the most effective means of disposing of the company’s assets. The aims were to maximise the returns to shareholders but also to return cash to them as soon as possible. The full range of disposal strategies was considered from individual property sales to a wider transaction. “Through an independent agent, Gerald Eve, the whole portfolio was marketed to potential buyers in an extensive and competitive process. Following a second round of bids, the board considered the GoldenTree Asset Management bid provided the best solution for shareholders, compared with the net present value of what might be achieved by way of individual sales over a longer period and represents a swift implementation of the shareholder resolution to conduct a managed wind-down.” The deal is expected to complete on 29 November.