Leicester property investor plans £22m bid for rival

DRIP owns Mayflower House in Gateshead
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Custodian REIT, the Leicester-based property investment firm, is mulling over a £21.6m bid to buy Drum Income Plus REIT.

Custodian says it has received an “irrevocable undertaking” from DRIP’s largest shareholder, Seven Investment Management, to support the offer.

DRIP has a portfolio of 10 sites, mainly in Scotland and the north of England.

A statement from Custodian said: “Custodian believes that on successful completion of the possible offer, if made, DRIP shareholders would benefit from, inter alia, gaining exposure to a larger portfolio with more diversity by sector and geography with a property strategy consistent with that of DRIP, and a holding in a significantly larger company offering accessible liquidity and lower ongoing charges as a percentage of net asset value.

“In addition, DRIP shareholders would hold shares in a company that has predominantly traded on a premium to net asset value since IPO and has managed to grow through the issuance of new shares, whilst current Custodian shareholders would benefit from exposure to DRIP’s portfolio with low purchaser’s costs.”

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