The boards of Tritax Big Box REIT PLC (LSE:BBOX) and UK Commercial Property REIT (LSE:UKCM) have agreed on a recommended all-share merger of the two companies.
The NAV-for-NAV merger creates the fourth-largest real estate investment trust (REIT) in the UK, with an approximately £3.9 billion market capitalisation and around £4.4 billion in net tangible assets.
Following the completion of the combination, UKCM shareholders will own approximately 23.3% and existing BBOX shareholders will own approximately 76.7% of the issued ordinary share capital of the combined group.
Tritax’s announcement stated: “The boards of BBOX and UKCM believe that the combination has a compelling strategic and financial rationale, building on BBOX's existing strategy and proven track record of delivering attractive and sustainable returns for shareholders.”
Michael Eakins, chief investment officer of UKCM's controlling shareholder, Phoenix Life, said: "We look forward to becoming a shareholder of Tritax Big Box. The allocation to Tritax Big Box forms a core part of our strategic asset allocation for long-term savings products within our with-profits funds".
Phoenix Life, which has approximately a 43.4% stake in UKCM, is part of Phoenix Group Holdings PLC (LSE:PHNX).