British landlord LondonMetric Property is in talks to merge with London-based real estate investment trust LXI to create a firm valued at 3.9 billion pounds ($4.94 billion), the companies said on Monday.
“The boards of LondonMetric and LXI see the potential to bring together two companies with complementary strategic approaches and a key focus on delivering compounding income-led total shareholder returns through the cycle,” the commercial property duo said in a joint statement.
LondonMetric, also a real estate investment trust, mainly owns logistic platforms alongside a grocery-led long-income portfolio, while LXI invests in varied sectors, including healthcare, budget hotels, theme parks, food stores, industrial, pubs, and education among others.
The combined portfolio with a gross asset value of about 6.4 billion pounds will have about 93% exposure to logistics, healthcare, convenience, entertainment and leisure sectors, the companies said.
Bloomberg News earlier in the day reported, citing people familiar with the matter, that LondonMetric was in merger talks with LXI to create the UK’s fourth-largest listed landlord by assets.
