LondonMetric Property is in talks with LXi REIT over the possible merger of the two companies.
The boards of the two companies are in discussions over the deal that would see LondonMetric acquire the entire issued share capital of LXi.
A merger would create a combined company with assets worth £6.4bn and a market capitalisation of around £3.9bn.
LondonMetric’s portfolio is weighted towards logistics, with a sizable portfolio of long-leased properties.
LXi’s portfolio is focused on long-leased income. In a statement to the London Stock Exchange, LondonMetric said a combined portfolio would be “aligned to structurally supported sectors”, with around 93% exposure to the logistics, healthcare, convenience, entertainment and leisure sectors.
The combined group would be internally managed and provide economies of scale and operating efficiencies and would target sustainable earnings and dividend progression, the company added. A key focus would be on delivering compounding income-led total shareholder returns.
LondonMetric said a firm offer was subject to a number of pre-conditions, including the completion of mutual due diligence, the provision of certain consents, waivers and approvals by each company’s lenders and the recommendation of the possible merger to LXi’s shareholders by the board of LXi.
There can be no certainty that any firm offer will be made. A further announcement will be made in due course.
LMP : LXI : LondonMetric and LXI REIT in £3.9bn merger talks