(Alliance News) - Urban Logistics REIT PLC on Friday said it has until March 15 to "clarify its intentions" with abrdn Property Income Trust Ltd.
The UK-focused logistics real estate investment trust said the deadline had been set by the panel on takeovers & mergers.
On Tuesday, Urban Logistics confirmed it approached API regarding an indicative offer for the latter's entire share capital.
API invests in UK commercial properties across the industrial, office, retail and other sectors.
Urban Logistics said the indicative offer represented a value of approximately 59.2 pence per share, based on API's closing price of 128.6p on Monday.
On Friday, Urban Logistics said it would continue its dialogue with API and its advisers and its due diligence.
The approach from Urban Logistics followed the announcement on January 19 of an all-share merger agreement between API and Custodian Property Income REIT PLC.
On Tuesday, Urban Logistics said its potential bid represented a premium of around 13% to Custodian's offer, which stood at around 52.4p per share based on Custodian's stock price of 67.2p at the close on Monday.
On Thursday, CREI acknowledged API needed time to consider the alternative proposal, but highlighted the attractiveness of its own plan.
"We firmly believe that the rational conclusion of this assessment would be to maintain its recommendation for the all-share merger with CREI".
"This will benefit both sets of shareholders by creating a well-positioned REIT of enhanced scale, with the opportunity to participate in the returns from the two complementary portfolios, with a fully covered and sustainable dividend," CREI said.
Shares in Urban Logistics fell 0.7% to 118.60 pence in London on Friday.
Shares in abrdn Property Income Trust Ltd rose 0.3% to 53.24p. Shares
Shares in Custodian Property Income REIT PLC rose 0.4% to 71.35p.
By Jeremy Cutler, Alliance News reporter
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Cust Prop Inc (CREI)
Urban Logistics (SHED)
Abrdn Property (API)