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Real estate investment trusts

Abrdn Property Income Fund in Advanced Discussions to Sell Portfolio for £350m

Strategic Insights

— 1 min read

The Abrdn Property Income fund has entered advanced discussions with Goldentree Asset Management to sell its entire portfolio, excluding its stake in land in Far Ralia, Scotland, for approximately £350m. This significant sale comes after a previous bid from Custodian Property Income REIT was voted down by shareholders, forcing the trust to begin winding down. The sale price represents a discount of 13.7 per cent to the portfolio's most recent valuation but is a 35 per cent increase over the trust's current market cap.

Key Takeaways:

  • Abrdn Property Income fund is in advanced discussions to sell its entire portfolio, excluding its Far Ralia stake, for around £350m.
  • The sale comes after a previous bid from Custodian Property Income REIT was voted down by shareholders, leaving the trust to begin winding down.
  • The sale price represents a discount of 13.7 per cent to the portfolio's most recent valuation but is a 35 per cent increase over the trust's current market cap.
  • Goldentree Asset Management, the buyer, is the team behind the failed IPO of Special Opportunities REIT earlier this year.
  • The trust's share price has spiked five per cent since the news was announced and is up 14 per cent since the start of the year.

Statistics:

  • £227m: The value of the Abrdn Property Income investment trust.
  • £405.5m: The most recent valuation of the Abrdn portfolio a few months ago.
  • 13.7 per cent: The discount to the portfolio's most recent valuation in the sale price.
  • 35 per cent: The increase in sale price over the trust's current market cap.
  • 60.8 per cent: The percentage of Abrdn shareholders who voted in favour of the Custodian Property Income REIT bid, less than the required 75 per cent threshold.
  • £350m: The proposed sale price of the Abrdn Property Income portfolio, excluding the Far Ralia stake.
  • 11.5 per cent: The discount to the portfolio's valuation, excluding the Far Ralia stake, in the sale price.
  • 38 per cent: The premium to the trust's market cap, excluding the Far Ralia stake.

Sources:

  • City A.M. - Not another one: Abrdn Property Trust moves to shut itself down
  • City A.M. - Abrdn Property Income custodian bid voted down by shareholders
  • City A.M. - Abrdn Property Income chair blasts 'misleading comments' in bidding war
  • London Stock Exchange - Response to Press Speculation
  • City A.M. - Special Opportunities London listing falls flat after REIT fails to meet fundraising target

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