This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+180914
Categories:Investments

Property trusts in merger talks

  • Print
  • Comment

The boards of the UK commercial property trust, managed by Ignis Investments, and the F&C commercial property trust are considering a merger. If the merger of the £640m F&C trust and the £979m Ignis trust does go ahead, the combined entity would be one of the UK’s biggest listed property companies.

Ignis, the asset manager owned by the Phoenix Group, has tabled proposals to both boards for a merger of the two companies.

Both boards are reviewing the proposals at present. In a statement, the Phoenix Group says the merger would combine two high quality and complementary property portfolios creating a strengthened portfolio.

Phoenix says the merged entity would have a lower expense ratio and greater liquidity. This, it says, would make it more attractive to institutional investors, which would help to drive value.

Both trusts are currently trading at a premium to net asset value, with the Ignis trust at a premium of 10 per cent and the F&C trust at a premium of 14 per cent.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Do you think the industry is ready to deliver Budget guidance?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments