Largest shareholder slams proposed property deal

The largest shareholder in a property group which owns a spate of industrial sites across the Midlands has criticised plans to sell the business in a deal valued at more than £25m.

Alpha Real Trust is the largest shareholder in Isle of Man-based Industrial Multi Property Trust (IMPT), holding 18.7% of the issued share capital. It also holds £10.3m of unsecured subordinated debt.

IMPT announced on Friday that it is set to be acquired by REIT Hansteen Holdings, which itself is a major commercial property investor in the region.

IMPT has a portfolio of around 100 properties across the UK. In the Midlands, its sites include Peartree Lane Industrial Estate in Dudley, St James Mill Business Park in Northampton, Webb Ellis Industrial Park, Rugby and Falcon Business Park in Burton-upon-Trent.

The directors of Hansteen said they had reached an agreement with the independent directors of IMPT to acquire the entire issued ordinary share capital of IMPT.

Under the terms of the offer, IMPT shareholders will receive 300p in cash for each IMPT share – a deal which values the business at £25,228,560.

However, in an update to the markets today, the directors of Alpha Real Trust said they were unhappy with the terms of the proposed deal.

“The directors of Alpha Real Trust wish to inform shareholders that they have not been consulted regarding the offer and believe it substantially undervalues IMPT,” said the statement.  

Alpha said IMPT had not provided shareholders with an updated NAV (net asset value) since September 30, 2016 and believed that industrial property values may have risen significantly over this period.

“The offer fails to reflect the significant stamp duty land tax saving (estimated at up to £2m by Jones Lang LaSalle) and portfolio premium benefits that were advised to IMPT by JLL in their letter of December 2016,” it adds.

“The board of IMPT has a duty to maximise value for shareholders and the directors of Alpha Real Trust believe the offer fails to achieve this.”

IMPT has yet to respond.

Click here to sign up to receive our new South West business news...
Close