In a decisive move, shareholders of the Ediston Property Investment Company (EPIC) have given their nod to the sale of the company’s entire property portfolio. The deal, valued at approximately £200.8m before deductions estimated at £4m, will see the portfolio transferred to a subsidiary of the S&P 500 member, Realty Income.
The approval, which took place during the trust’s general meeting on 26 September, witnessed a significant majority, with 92.58% of the votes supporting the sale. The finalization of this transaction is slated for 28 September, post which, further details will be disclosed.
This decision is a culmination of EPIC’s strategic review initiated on 16 March. The review explored potential avenues, including a merger with another REIT or the sale of its assets, primarily due to the trust garnering fewer assets than anticipated. EPIC had previously confirmed negotiations with Realty Income regarding the sale. Initial expectations from the trust estimated returns of £152.2m from the deal, translating to 72p per share, marking a 17.7% premium on its share price at the time of the strategic review’s commencement.
However, the deal also signifies a 10.8% discount to the latest net asset value per share, which stood at 80.77p as of 30 June. Established in 2014, EPIC’s portfolio, comprising 11 retail warehouses, is presently under the stewardship of Danny O’Neill and Calum Bruce.
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