Victoria Property launches possible offer for Ground Rents Income Fund

(Alliance News) - Victoria Property Holdings Ltd on Wednesday made a possible takeover offer for Ground Rents Income Fund PLC, following the failure of three previous acquisition bids.

The Londonderry, UK-based real estate company focused on luxury lettings, said the implied valuation of GBP32.5 million represents a premium of around 49% to Ground Rents's closing price of 22.90 pence each on Tuesday. The offer also exceeds Ground Rents's 12-month maximum share price of 32.00 pence.

Ground Rents is a London-based real estate investor. Shares in the company rose 34% at 30.60 pence each on Wednesday morning in London.

Victoria Property, which is part of Martin Property Group Ltd, commented on Ground Rents: "We see a mature business which has been navigating wider residential market uncertainty, which we expect to continue into the medium-term."

Grounds Rents in November and December rejected three prior offers from Victoria Property. This followed Ground Rent shareholders voting in favour of continuation, despite Ground Rents in 2023 adopting an investment policy which targeted a controlled liquidation of the firm.

Since its adoption, Ground Rents has sold three assets totalling around GBP11 million. Victoria Property said Ground Rents's current policy would likely result in "a prolonged exit period of many years with elevated operating costs".

Alternatively, Victoria Property said, its takeover bid would provide "a full, all-cash exit" with a lower execution risk.

Victoria Property has until February 5 to announce a firm intention to make an offer for Ground Rents, or to announce that it does not intend to make an offer.

By Holly Munks, Alliance News reporter

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