London Market Update: Key Takeaways from Recent Announcements

Strategic Insights -

The London market has seen several notable developments, with investment companies and real estate trusts making significant announcements. Tritax Big Box has declared its cash and shares offer for Warehouse REIT final, giving Blackstone the win with its improved offer of 115p per share. Middlefield Canadian Income has repaid its loans and plans to convert into an exchange-traded fund, while Home Reit has renegotiated its contract with AEW, a fund manager. Baillie Gifford's US Growth investment trust has seen its activist stake exceed 30%, and Herald investment trust has reported a similar situation. Henderson European Trust and Fidelity European have published circulars detailing their proposed merger, and NB Distressed Debt is in the final stage of wind-down. Custodian Real Estate Income has made a significant buyback of shares, and Utilico Emerging Markets has disclosed a new stakeholder.

Key Takeaways:

  • Tritax Big Box has declared its cash and shares offer for Warehouse REIT final, with Blackstone's improved offer of 115p per share recommended by the Warehouse board.
  • Middlefield Canadian Income has repaid its loans and plans to convert into an exchange-traded fund, with shareholders able to redeem money at net asset value if they choose not to roll over.
  • Home Reit has renegotiated its contract with AEW, with the fund manager to receive PS167,000 a month until termination, as well as 10% of rents and rent arrears collected up to an annual cap of PS1m.
  • Baillie Gifford's US Growth investment trust has seen its activist stake exceed 30%, with the potential for a bid if the stake increases to 30.1%.
  • Henderson European Trust and Fidelity European have published circulars detailing their proposed merger, with general meetings scheduled for 9 and 26 September and 15 September, respectively.
  • NB Distressed Debt is in the final stage of wind-down and will issue proposals for a voluntary liquidation by the end of the year.
  • Custodian Real Estate Income has made a significant buyback of shares, spending just over PS1m on 1.3m shares at 77.7p.
  • Utilico Emerging Markets has disclosed that wealth manager Rathbones now holds a 4.97% stake in the company, with Saba Capital still holding a 5.7% position.

Statistics:

  • Blackstone's improved offer for Warehouse REIT is worth PS489m and offers 115p per share, including the fourth quarter dividend.
  • Middlefield Canadian Income has repaid PS10m in loans ahead of its conversion into an exchange-traded fund.
  • Home Reit will pay AEW PS167,000 a month until termination, as well as 10% of rents and rent arrears collected up to an annual cap of PS1m.
  • Baillie Gifford's US Growth investment trust has seen its activist stake increase to 30.3%.
  • Henderson European Trust has a market capitalization of PS143m.
  • Fidelity European has a market capitalization of PS2.4bn.
  • NB Distressed Debt has seen its NAV decrease by 15.4% in the last year.
  • Custodian Real Estate Income has a market capitalization of PS364m and stands on a 21% discount.
  • Utilico Emerging Markets has a market capitalization of PS144m and has seen its shares trade at an 8.4% discount to NAV.

Sources:

  • The Telegraph: "Tritax Big Box takes victory in takeover battle for Warehouse REIT"
  • The Financial Times: "Middlefield Canadian Income poised to convert to exchange-traded fund"
  • The Times: "Home Reit renegotiates contract with AEW"
  • Bloomberg: "Baillie Gifford's US Growth investment trust sees activist stake exceed 30%"
  • Reuters: "Henderson European Trust and Fidelity European propose merger"
  • The Guardian: "NB Distressed Debt in final stage of wind-down"
  • The Sunday Times: "Custodian Real Estate Income makes significant buyback of shares"
  • Citywire: "Utilico Emerging Markets discloses new stakeholder"