GoldenTree Asset Management Acquires abrdn Property Income Trust for £351 Million

GoldenTree Asset Management, the US-based owner of Travelodge, has announced the successful acquisition of abrdn Property Income Trust (API) for a total of £351 million. This significant transaction marks a major development in the UK property investment market and brings API’s managed wind-down process to a close.

Under the terms of the deal, GoldenTree will acquire abrdn Property Holdings, a subsidiary of API, which includes a portfolio of 39 properties. A cash deposit of £35.1 million has already been made by GoldenTree, with the remaining balance to be paid upon the finalisation of the takeover.

In addition to this substantial property portfolio, the acquisition includes all of API’s assets, with the exception of land situated in Far Rangorm. The deal comes after a series of pivotal moments for API, including the collapse of a potential merger with Custodian Property Income REIT earlier this year. The merger, which was subject to a shareholder vote, ultimately failed due to insufficient support, receiving less than the required 75% shareholder approval.

Following this setback, API shareholders voted in May 2024 to approve modifications to wind down and liquidate the trust’s assets. A competitive bidding process ensued, with API’s board concluding that GoldenTree’s offer presented the best value for shareholders. The acquisition will also see the transfer of API’s existing debt facility with RBSI to GoldenTree.