Urban Logistics REIT has ignited a competitive bidding process with a counteroffer for the Abrdn Property Income Trust, setting a 13 per cent premium over the bid from Custodian Property Income. This escalation marks a heated contest for the trust, spotlighting the vigorous activity in the realm of real estate investment trusts aimed at broadening logistics and retail warehouse portfolios.

The counterproposal places the value of Abrdn’s shares at 0.469 Urban Logistics shares, equivalent to 59.2p each. This development is part of a series of merger and acquisition activities that have characterised the sector recently, reflecting a strategic push towards consolidation.

Highlighting the complementary nature of the potential merger, Urban Logistics pointed out that combining with Abrdn Property Income Trust would result in a portfolio where only a small fraction is outside their core focus of logistics and retail warehouses. Such a merger promises to create a significant presence in the market with a combined worth of £830m and a spot in the FTSE 250 index.

Urban Logistics, known for its impressive track record of shareholder returns since its flotation in April 2016, has reported a cumulative total accounting return of 111.6 per cent through to September 2023. The company’s experienced management team is cited as a pivotal factor in this success, suggesting the merged entity could enjoy similar prosperity.

This bid for Abrdn Property Income Trust highlights the strategic movements within the REIT sector, demonstrating the aggressive pursuit of expansion and synergy in a competitive marketplace.