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LondonMetric and LXI Engage in Merger Discussions to Form a £3.9 Billion ($4.94 Billion) Property Powerhouse

The combined portfolio, boasting a gross asset value of approximately £6.4 billion, is poised to have a significant presence in logistics, healthcare, convenience, entertainment, and leisure sectors, accounting for about 93% of the overall exposure, according to statements from both companies.

BENGALURU: In a strategic move, British property company LondonMetric Property is currently in talks to merge with London-based real estate investment trust LXI, intending to establish a formidable entity valued at £3.9 billion ($4.94 billion), as announced by the companies on Monday.

Both the LondonMetric and LXI boards envision the merger as an opportunity to unite two entities with complementary strategic approaches. Their shared focus revolves around delivering compounding income-led total shareholder returns throughout economic cycles, according to a joint statement from the commercial property duo.

LondonMetric, operating as a real estate investment trust, predominantly holds logistic platforms alongside a grocery-led long-income portfolio. In contrast, LXI has diversified investments across sectors such as healthcare, budget hotels, theme parks, food stores, industrial facilities, pubs, and education.

The combined portfolio, boasting a gross asset value of approximately £6.4 billion, is poised to have a significant presence in logistics, healthcare, convenience, entertainment, and leisure sectors, accounting for about 93% of the overall exposure, according to statements from both companies.

Earlier in the day, Bloomberg News, citing insider sources, reported that LondonMetric’s merger discussions with LXI aim to position the newly formed entity as the fourth-largest listed landlord in the UK based on assets. This potential merger signifies a strategic alignment of interests and assets to create a powerful force in the British property market.

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