Ediston Property agrees to £200m sale of property portfolio
The deal represents a 10.8% discount on the most recent net asset value per share of 80.77p
The move follows the launch of a strategic review on 16 March, and the trust's announcement last month that it was in talks with Realty Income to sell its property portfolio.
After transaction costs, the trust expected to gain £152.2m for the deal, or 72p per share, which represents a 17.7% premium on its share price of 61.2p upon the launch of the strategic review.
However, the deal also represents a 10.8% discount to the most recent net asset value per share of 80.77p, which was published on 30 June.
Ediston Property confirms plans to sell entire portfolio
Launched in 2014, the trust's portfolio of 11 retail warehouses is currently managed by Danny O'Neill and Calum Bruce, bringing in an average rent of £16.4m a year and valued at £207.3m.
The deal is subject to shareholder approval at EPIC's general meeting on 26 September. The TR Property Investment Trust, which is EPIC's largest shareholder, has already expressed support for the transaction.
Marcus Phayre-Mudge, fund manager at TR Property, agreed with the board's «self-awareness» that the trust was a «well-run business that is simply too small to stand alone».
«The regulatory, reporting and investor relations requirements for listed companies have mushroomed over the years,» he said. «The costs of running a listed property company with less than about £750m in assets are now disproportionate.»
«EPIC has sold its portfolio at a healthy premium to the undisturbed share price. This reinforces the fact there is investor demand for retail warehousing, which offers retailers sales channels that complement the move to online.»
Ediston Property Investment Company proposes merger
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