LondonMetric Property PLC (LMP.L) and Schroder Real Estate Investment Trust Ltd. (SREI.L) said on Friday they have agreed to acquire Picton Property Income Ltd. (PCTN.L) in an all-stock transaction worth about £404 million.
Under the terms of the transaction, Picton shareholders will receive 0.190 new LondonMetric shares and 0.894 new SREIT shares for each Picton share they own.
Based on LondonMetric's closing share price of 198.0 pence and SREIT's closing share price of 45.9 pence on July 30, the offer values each Picton share at 78.70 pence, representing a 7% premium to Picton's previous closing price.
After concluding the deal, Picton shareholders will hold roughly 4% of LondonMetric's enlarged share capital and 48.4% of SREIT's.
Under the agreed asset split, LondonMetric will acquire 46% of Picton's property portfolio, valued at £320 million as of June 30, 2026, comprising the Canada Life facility properties, which are predominantly industrial, along with about £24 million in net cash. SREIT will receive the remaining 54% of the portfolio, valued at £382 million, including the Aviva, NatWest debt facilities and any uncharged properties, with a mix of industrial and office assets.
The consortium said the transaction is expected to increase Picton shareholders' earnings by 39.4% on a pro forma basis, based on the companies' latest full-year results, while boosting their dividend income by 47.4%.
The acquisition will be implemented through a court-sanctioned scheme of arrangement and is expected to become effective in early September 2026, subject to shareholder, court and regulatory approvals.
The Picton board has unanimously recommended that shareholders vote in favour of the transaction.
The consortium has secured irrevocable undertakings representing about 12.02% of Picton's issued share capital, including commitments from Picton's directors and TR Property Investment Trust plc. A scheme document is expected to be published within 28 days.
On the London Stock Exchange, LondonMetric shares were down 0.45% at 197.10 pence, SREIT shares fell nearly 3% to 44.55 pence, while Picton shares gained about 2% to 75.10 pence.
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