UK's LondonMetric, LXI in merger talks to form $4.94 bln property company (updated)

LXi REIT

18/12/2023 15:13

(Adds companies' profile in paragraph 3, details of combined
entity in paragraph 3)
       Dec 18 (Reuters) - British landlord LondonMetric
Property is in talks to merge with London-based real estate
investment trust LXI  LXIL.L  to create a firm valued at 3.9
billion pounds ($4.94 billion), the companies said on Monday.
    "The boards of LondonMetric and LXI see the potential to
bring together two companies with complementary strategic
approaches and a key focus on delivering compounding income-led
total shareholder returns through the cycle," the commercial
property duo said in a joint statement.
    LondonMetric, also a real estate investment trust, mainly
owns logistic platforms alongside a grocery-led long-income
portfolio, while LXI invests in varied sectors, including
healthcare, budget hotels, theme parks, food stores, industrial,
pubs, and education among others. 
    The combined portfolio with a gross asset value of about 6.4
billion pounds will have about 93% exposure to logistics,
healthcare, convenience, entertainment and leisure sectors, the
companies said.
    Bloomberg News earlier in the day reported, citing people
familiar with the matter, that LondonMetric was in merger talks
with LXI to create the UK's fourth-largest listed landlord by
assets.
    

($1 = 0.7894 pounds)

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Anil D'Silva and Shweta Agarwal)
 ((abyjose.koilparambil@thomsonreuters.com))