Days after Abrdn Property Income Reit came out in favour of a takeover by Custodian Reit, a rival has called on it to reconsider.
In an announcement today (March 18) Urban Logistics claimed its proposal to takeover the company instead would be the best option for shareholders.
It comes four days after the £260mn Abrdn Reit issued its support for a takeover by Custodian Reit.
A shareholder vote on this deal was initially delayed when Urban Logistics lodged a last minute offer.
However, after consideration, the Abrdn board unanimously reaffirmed its recommendation that shareholders vote in favour of the Custodian merger at a meeting which will take place on March 27.
The latest statement from Urban Logistics urged shareholders to reject this proposal though.
It said: "The Urban Logistics board believes in the compelling investment merits of logistics real estate over the medium to longer term.
"Other real estate asset classes may currently be higher yielding but the Urban Logistics board believes that long term value will be created through a sustainable and growing rental income base derived from assets which are fit for modern purpose and actively managed."
It went on to say the firm will continue its dialogue with shareholders of the Abrdn Property Income Reit.
James Clifton-Brown, chair of Abrdn Property Income, said the Custodian merger represents to most "strategically consistent and significant enhancement to the status quo for API shareholders".
He added: "The merger offers continued exposure to a diversified, income-focused strategy as well as the growth prospects of the enlarged portfolio."
Just before this, Custodian agreed to remove its term of appointment which means after the merger was completed Custodian Reit could terminate the appointment with 12 months notice and waive its one-off project fee of £350,000 or £75,000 if the merger did not go through.
tara.o'connor@ft.com
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