UK property trusts in £1.6bn merger
F&C Commercial Property Trust and UK Commercial Property Trust to merge
The F&C Commercial Property Trust (FCPT) and UK Commercial
Property Trust (UKCPT) have agreed to merge.
The newly-formed firm will be the sixth largest-listed property
company with a market capitalisation of around £1.6 billion.
FCPT will be liquidised and its investors will be offered a cash
alternative of 91 pence for each share, while new ordinary shares
will be issued by UKCPT.
Ignis, the firm who manage the UKCPT, has been appointed to run
the new business.
Gary Hutcheson, property investment director at Ignis, claimed
that the move would benefit both firms.
He told Reuters: "They both bring something to the party. UKCPT
has longer lease lengths and a better income and covenant profile,
while FCPT brings better London and South Eastern exposure and
better potential for short-term performance."
The enlarged trust is also expected to improve access to debt
due to the UKCPT's large cash reserves.