Leicester property investor agrees £21.4m deal to take over rival

Leicester-based Custodian REIT has agreed a £21.4m deal to acquire rival Drum Income Plus.

The deal comes after a month of talks between the two parties, with Drum directors now recommending the offer to its shareholders.

Hugh Little, chairman of Drum said: “This transaction gives Drum Shareholders the opportunity to participate in a portfolio of regional real estate assets that has similar characteristics to the existing Drum portfolio but is larger and, as a result, more diversified.”

David Hunter, chairman of Custodian said: “I am delighted to announce this important transaction for Custodian, which I am confident should benefit both our new and existing shareholders. The property portfolios of each company are complementary, and the acquisition is expected to deliver increased earnings and dividend cover, to further diversify our portfolio and to reduce our ongoing charges ratio.”