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Columbia Threadneedle and Patrizia Merge UK Property Funds in £1.5bn Deal
Major Merger in the UK Real Estate Investment Sector
Overview of the Deal
LONDON, July 2 (Reuters) – U.S.-based investment manager Columbia Threadneedle and Germany’s Patrizia have agreed to merge their British property trusts, the companies said on Thursday, in line with a trend for real estate investors to seek increased scale to weather high borrowing costs.
• The deal will create a combined fund with around £1.5 billion ($2 billion) of assets spanning warehouses, offices, retail and residential.
Shareholder Approval and Strategic Review
Patrizia Hanover Property Unit Trust (PATH) Shareholder Vote
• Shareholders in Patrizia Hanover Property Unit Trust, or PATH, have voted in favour of merging with Threadneedle Property Unit Trust, a statement said.
Strategic Review Outcome
• It said PATH chose the option after a strategic review.
Sector Context and Recent Deals
Other Notable Mergers and Acquisitions
• In other deals in the sector, Blackstone took over Warehouse REIT last year, while Primary Health Properties merged with Assura.
Recent Takeover Proposals
• Last week, U.S. logistics firm Prologis made public a £12.6 billion takeover proposal for Britain’s Segro, which had been rejected.
Industry Commentary
Columbia Threadneedle’s Perspective
Statement from Joseph Vullo
• “Having now successfully completed two major fund consolidation transactions, we believe Columbia Threadneedle is increasingly recognised as a partner that can help clients navigate a changing real estate market,” said Joseph Vullo, Head of Real Estate, Europe at Columbia Threadneedle Investments.
Additional Information
($1 = 0.7517 pounds)
(Reporting by Iain Withers; editing by Barbara Lewis)