IN BRIEF: Ground Rents Income rejects fifth Victoria offer

Ground Rents Income Fund PLC - London-based property investor - Receives and rejects fifth non-binding acquisition offer from Victoria Property Holdings Ltd at GBP40.0 pence per share, as the offer "continues to significantly undervalue" the company. Victoria had made a fourth offer of 37.5p per GRIO share on January 31. GRIO says it continues to provide Victoria with requested materials so that it may conduct due diligence, though notes "the company already provides a high level of relevant disclosure in its accounts". In January GRIO had declined to provide further access to due diligence information as requested by Victoria. Relatedly, GRIO has requested and received an extension from the Takeover Panel until 17:00 GMT on February 25 for Victoria to announce its intention to make an offer.

Further, GRIO provides a company update. Says "progress continues in implementing the strategy to reduce risk and improve portfolio liquidity" despite the underlying portfolio remaining subject to a material valuation uncertainty clause due to a lack of transactional evidence and uncertainty relating to leasehold reform and building safety legislation. Says since September 30, has completed disposals totalling GBP11.6 million at or above the prevailing independent valuation, with most proceeds used to repay debt. In addition, looks forward to a substantive hearing scheduled by the end of July relating to the High Court's ruling that the company and other freeholders may pursue a legal claim regarding the enfranchisement provisions of the Leasehold and Freehold Reform Act 2024. Regarding property safety since September 30, the number of properties affected by building safety-related defects and associate valuation adjustments has declined to 22 from 24. "Good progress has been achieved at the remaining properties, including securing third-party funding and construction work underway but not yet certified as complete," GRIO adds.

Current share price: 34.00 pence, closed up 3.7% in London on Wednesday

12-month change: up 5.6%

By Aidan Lane, Alliance News reporter

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