The combination of the two firms is set to make a real estate giant worth almost £4 billion
Warehouse giant Tritax Big Box is set to become a £4bn property titan after agreeing to buy rival UK Commercial Property REIT (UKCM) for £924 million.
Tritax, known for owning large warehouses often found near motorways and housing major tenants like Ocado, Amazon and B&Q, said the merger will “bring together complementary logistics-oriented investment portfolios with a shared focus on resilient and growing income”. The smaller firm, UKCM, has investments in shopping centres, office buildings and distribution centres.
It came after reports over the weekend by industry title React that Tritax Big Box had made an “indicative proposal” for an all-share merger between the London-listed rivals. Bosses at Tritax said the deal will bring together a real estate portfolio worth around £6.3 billion focused on the logistics sector.
The deal values UKCM at 71.1p per share, a 10.8% premium on its Friday closing price. Tritax bosses believe the merger will enhance their customer offering through a high-quality logistics portfolio across a broader range of property sizes and tenant uses, from ‘Mega-Boxes’ to smaller, strategically located, logistics assets within key urban locations.
Shares in UKCM rose by 4.7% in early trading on Monday, while Tritax saw a decrease, trading 2.1% lower.