Custodian Property Income REIT (CREI) and abrdn Property Income Trust (API) have successfully completed an all-share merger, establishing a combined entity boasting a diverse portfolio of approximately 200 assets, collectively valued at over £1 billion.

The portfolio will consist of, office, retail distribution warehousing, industrial and other alternative assets such as student housing, data centres, high street retail, and gyms.

CREI will acquire the whole issued share capital of API and once the merger is completed, current CREI shareholders will hold 59.7%, while API shareholders will hold 40.3% of the enlarged entity.

David MacLellan, chairman of CREI, said: “This transaction creates a well-positioned REIT of significant scale, giving the combined group’s shareholders the opportunity to participate in the returns from the complementary API and CREI portfolios, with a fully covered and sustainable dividend and a focus on ESG.”

James Clifton-Brown, chair of API, added: “The merger will enable API shareholders to retain exposure to the portfolio and its growth prospects at a significant premium to API’s share price, with the prospect of superior share liquidity and an enhanced and fully covered dividend. The API board believes that, with increased scale and an enhanced capital structure, the combined group will be well-positioned for the future.”