Custodian Property Income REIT has announced its plan to acquire abrdn Property Income Trust through a recommended all-share merger. The acquisition values abrdn Property Income Trust at approximately £237 million ($301.2 million).

According to the real estate investment trust company, shareholders of abrdn Property Income Trust, also known as API, will receive 0.78 new shares of Custodian Property Income REIT (CREI) for each of their own shares. The valuation of API is based on the price of the company's shares on Thursday, as stated by CREI. This deal represents a premium of around 29% to API's closing price of 48 pence.

Both the CREI Board and the API Board believe that the merger will bring together two portfolios that complement each other. This will result in the creation of a differentiated REIT with enhanced diversification, share liquidity, and a fully covered and sustainable dividend for the combined group's shareholders.

Once the merger is finalized, CREI shareholders will hold 59.7% of the enlarged group, while API shareholders will hold 40.3%. The entity will boast a larger portfolio consisting of over 200 assets and a combined property value exceeding £1.0 billion as of December 31.

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