UK Commercial Property REIT (LSE:UKCM) confirmed speculation that it is in talks with Picton Property Income Ltd about a possible all-share merger.
It said the discussions are about a potential merger on an EPTA NTA-for-NTA basis, referring to the European Public Real Estate Association's measure of net tangible assets.
"There can be no certainty either that an offer will be made nor as to the terms of any such offer," it added.
Picton later put out a statement noting that under the terms of its proposal to UKCM, "the combined company would be internally managed".
Picton chief executive Michael Morris is responsible for managing the £360 million company’s investment strategy, while the larger UKCM is managed by Abrdn PLC (LSE:ABDN) and a component of the FTSE 250 index, with a market cap north of £700 million.