(Sharecast News) - LondonMetric Property has finalised its acquisition of CT Property Trust (CTPT), it announced on Tuesday, issuing 105.6 million new shares to CTPT shareholders.
The FTSE 250 company said the new acquisition introduced a complementary range of quality assets into its portfolio, offering substantial asset management possibilities and notable rental growth potential.
It said the deal was also expected to lead to significant cost savings, deliver economies of scale, and introduce an appealing debt structure.
It was projected that the acquisition would enhance the company's earnings.
Post-acquisition, the value of LondonMetric's portfolio had surged to £3.2bn, generating an annual rental income of £160m.
That income is sourced from a range of occupants, the board said.
Key highlights of the portfolio included an average lease duration of 11 years, a near-full occupancy rate of 99%, and promising rental growth prospects.
Notably, 44% of the assets were concentrated in urban logistics, showcasing the portfolio's strength in that sector.
"This opportunistic acquisition will benefit both sets of shareholders and provide greater liquidity," said chief executive officer Andrew Jones.
"We will immediately begin to integrate the CTPT portfolio assets and work towards disposing of assets that are deemed non-core to our strategy."
At 0937 BST, shares in LondonMetric Property were flat at 184p.
Reporting by Josh White for Sharecast.com.
LondonMetric (LMP)