In a significant move, the Ediston Property Investment Company plc (EPIC) has officially announced its decision to sell its entire property portfolio to a wholly-owned subsidiary of Realty Income. The deal, valued at approximately £200.8 million, will see agreed deductions of around £4 million.

The properties in question comprise 11 retail warehouse assets strategically located across the UK. These assets collectively cover an expansive area of 1.18 million sq. ft. and are currently leased to a diverse range of 64 tenants, spread over 108 units.

The sale’s completion hinges on the approval of EPIC shareholders, with a pivotal General Meeting scheduled for 26th September. Notably, TR Property Investment Trust plc, EPIC’s largest shareholder, has already given an irrevocable undertaking to support the shareholder resolution. This endorsement represents a significant 16.41% of EPIC’s issued ordinary share capital.

This decision to sell comes in the wake of a strategic review the board initiated on 16 March 2023. The company had been grappling with several challenges, including low liquidity levels in ordinary shares, a modest market capitalisation hindering larger investors, constraints on diversifying across more extensive retail warehouse schemes due to the company’s size, and operational cost inefficiencies.

William Hill, Chairman of Ediston Property Investment Company, commented on the development, stating, “The Board was very pleased with the interest shown in the Company, with proposals being received from a number of potential counterparties.” He further added that after a thorough analysis, the board concluded that selling the entire property portfolio to Realty Income was the most effective strategy to maximise shareholder value.

The sale’s implications are profound. If the disposal becomes unconditional, the board plans to seek shareholder approval for the company’s voluntary liquidation, aiming to distribute the majority of the company’s net assets to shareholders by the end of this calendar year.