Alternative Inc Share Price (AIRE)

A contractual takeover offer is technically an offer for all shares, but unlike a scheme of arrangement, it does not require 100% acceptance to succeed.

So legally it’s still: “bid for the whole company” …but practically it can function a bit like: “we’ll take whatever gets us control.”

That’s why the 50% acceptance condition matters so much.

So Glenstone only need another ~25% of shareholders to accept in order to take control. I suspect a low-ish offer and they hope that it gets them over 50%. The 66p mooted offer is likely posturing / opening negotiations. I would not be surprised to eventually see something in the low 70's.

But I’m not sure many people will take a low offer. The remaining holders in AIRE are therefore more likely to be:

* deliberate income/value investors,

* sector specialists,

* people who understand REIT maths,

* and investors consciously accepting illiquidity in exchange for yield and discount.

That’s a very different shareholder base from: “please rescue me from this terrible investment”. So Glenstone’s challenge is probably not: “convince angry holders to sell.” It is: “convince satisfied yield investors that liquidity now is preferable to continuing ownership.”

Me personally, I’d only really be interested in an exit very close to NAV, because I could simply recycle the capital into other discounted REITs elsewhere in the sector. Otherwise I will probably continue to hold, even if it eventually moves to TISE. I still think shareholders would broadly remain aligned with Glenstone and, as a REIT, the vehicle would still fundamentally exist to distribute income.

It may even flush out a better offer, it sounds like AEWU almost agreed on price - but no paper please. Look how that went down at Picton.

A UK-focused property investor / REIT, headquartered in London and registered in England & Wales since 1970. Glenstone is listed on TISE (The International Stock Exchange in Guernsey), not the LSE main market. Their registered office is in Mayfair, London. One thing I find interesting is that Glenstone itself is not a huge vehicle relative to AIRE. This is not Blackstone or Brookfield coming after a tiny REIT. Glenstone’s market cap is only modestly larger than AIRE’s, which makes the situation feel more strategic and opportunistic than transformational. I was slightly surprised by Glenstone’s approach so far, which has appeared somewhat aggressive. The recent proposal was obviously never going to be accepted at that level and felt more like posturing and negotiation tactics than a serious attempt to secure the company. However, if you look back far enough, Glenstone originally bought its way in via a Tender Offer at 59.25p per share, which AIRE stated at the time “significantly undervalues the Company, representing a discount of 29% to the 30 June 2020 net asset value per share of 83.58 pence”. In AIRE’s case, Glenstone offered to buy up to 25% at a fixed price during the COVID/property panic period:

https://www.lse.co.uk/rns/AIRE/response-to-proposed-tender-offer-from-glenstone-zb6vz03c6vdhi4t.html

That allowed Glenstone to quickly build a strategic block. At the time, Glenstone stated: “Glenstone does not intend to make an offer to acquire... nor does it intend to seek a direct role in the management of AIRE's portfolio or any combination of its own assets with those owned by AIRE”. However, they also stated: “Glenstone will seek representation on AIRE's Board and will be supportive of a low operating cost base and other initiatives which seek to maximise returns to shareholders.”

Following this, Glenstone secured board representation through Adam C Smith joining as a Non-Executive Director. Then in 2024, the investment manager was changed from M7 Real Estate Limited to Martley Capital (I would speculate this was at least influenced by the new board representation).

In hindsight, this situation has probably been evolving for several years rather than being a sudden takeover approach appearing out of nowhere, although the current position does appear to represent a shift from Glenstone’s originally stated intentions.

No way for me an american private equity bunch offering low ball to nav.

Not interested at even nav - aire have new future finance secured and a high dividend payout. I would prefer to keep this rather more hollowing out by short buck opportunity...

Latest RNS:

"On 12 November 2025, Glenstone made an indicative cash proposal at 66.5 pence per Share, without evidence of funding. At the time, this proposal represented a discount of 20.8% to Alternative Income's stated Net Asset Value ("NAV") per Share of 84 pence* and an 11.3% discount to the closing price per Share of 75 pence**. "

If Glenstone make another offer before or on the 12th June, the offer price better be more appropriate than the last offer they made in November last year. 66.5p per share is an utter joke. The AIRE board should at least seek out 77p per share or above.

This is more like it, potential cash offer from Glenstone + chance to remain on board. Most welcome.

See RNS.