Market's view on UK Commercial Property Trust
Published on April 2024
- The merger between UKCM and BBOX is viewed positively by Phoenix, suggesting a fee rebate arrangement for Phoenix might persist, providing a unique financial benefit not available to other shareholders.
- The annual report of Ocado Hatfield is noted, though the lease isn’t mentioned; watchers speculate on potential redevelopment plans for the upcoming inclusion in BBOX’s portfolio.
- UKCM’s shares have seen a recovery from 55p to 70p over the last four months.
- There are concerns about UKCM’s decision to abstain from voting for a merger with BBOX, with suggestions that a better deal might have been possible with a more open and comprehensive sales process.
- The sale of a Bristol office at NAV is noted, indicating potential undervaluation in REITs’ shares.
- A speculative idea about UKCM liquidating their portfolio for shareholder return is discussed.
- Discussion on the potential for other REIT funds being targets for takeovers due to their current market discounts.
- The merger between UKCM and BBOX has mixed reactions; some see it as an opportunistic acquisition by BBOX at below NAV, while others appreciate the strategic shift to pure-play logistics.
- Concerns are raised about the lack of synergy and increased risks from BBOX’s proposed acquisition strategy.
- Watchers are speculating on the potential motivations behind BBOX’s merger activities, including aspirations to enter the FTSE100 and attract tracker investments.