BCLP is advising LXi REIT on a £6.2 billion merger with LondonMetric Property to create the UK’s fourth largest REIT

BCLP is advising LXi REIT plc (“LXi”) on its recommended all-share merger with LondonMetric Property plc (“LMP”), which was announced today (11 January 2024). LXi and LMP are London-listed REITs which are both members of the FTSE 250 index.

The transaction values the entire issued share capital of LXi at approximately £1.9 billion. The combined group will have a EPRA NTA of approximately £4.1 billion, a combined property portfolio valued at £6.2 billion and will be the fourth largest UK REIT.

If approved, existing shareholders of LMP will hold approximately 54 per cent of the combined group and the existing shareholders of LXi will hold approximately 46 per cent of the combined group.

The transaction will be subject to the approval of shareholders of both LXi and LMP and is expected to complete during March 2024.

The combined group will have a Premium Listing and will be admitted to the London Stock Exchange’s Main Market.

Lazard & Co., Jefferies International and Banco Santander are acting as financial advisers to LXi in connection with the transaction. Barclays Bank, Peel Hunt and J.P. Morgan Cazenove are acting as financial advisers to LMP. CMS Cameron McKenna Nabarro Olswang are acting as legal advisers to LMP.

The BCLP team is being led by Benjamin Lee and Richard Werner.

The BCLP Corporate Transactions team also includes Lara Rush, Sydne Watson, Florence Ha, Liam Johnson and Miriam Walters-Manneh.

Tax advice is being provided by Mark Brailsford, Andrew Cromb and Sarah Johnson. Advice on anti-trust matters is being provided by Victoria Newbold, Nicholas Young and Calum Paton.

Commenting on the transaction, Richard Werner said:

“M&A activity in the UK listed REIT sector continues, with a number of companies having been taken private and ongoing consolidation. There are clear advantages in this market to having greater scale, as this transaction demonstrates. This is the fourth major public M&A transaction that BCLP has advised on in the real estate sector since late 2021, and further evidences our top-tier credentials for this type of work.”

Benjamin Lee said:

“Our global M&A team advised on over 300 transactions in 2023 and it’s great to get 2024 off to a very strong start by advising on the merger of LXi and LondonMetric. This has been another opportunity for us to combine our market-leading public M&A expertise and deep real estate sector knowledge to support our client’s commercial strategy and we’re delighted to be advising LXi on this important transaction.”

The transaction announcement can be found here.