Tamar European Industrial Fund : TEIF – recommended cash offer

Tamar European Industrial Fund announced on 16 June that Lux Starlight, a newly incorporated Luxembourg private limited liability company, and TEIF have agreed on the terms of a recommended cash offer to be made by Lux Starlight for the entire issued and to be issued ordinary share capital of TEIF. The offer is 38.25p in cash, valuing the total issued ordinary share capital of TEIF at approximately £53.55m, and 7.75% higher than TEIF’s closing mid-market price. TEIF is winding itself up and its Board are wary of running costs being an increasing proportion of its assets. They also say they are “mindful of the potential impact of the volatility in currency exchange rates, among other things, on the realizable value of its remaining assets”. Lux Starlight is a special purpose vehicle intended to form a new joint venture targeting investment in the continental European industrial real estate sectors of up to a capital value of €500m between funds managed by Starwood (including Starwood Fund IX) Starwood Fund IX and M7 Real Estate Ltd to invest in light industrial real estate assets in Europe, principally in Germany, the Netherlands and France.