Urban Logistics starts bid battle for Abrdn Property Income

Last-mile warehouse investor Urban Logistics (SHED) has started a bidding war for Abrdn Property Income (API), leaping in with a rival all-share offer a month after the industrials-heavy generalist agreed to merge with Custodian Property Income (CREI).

In the latest twist to a consolidation story as the fragmented real estate investment trust (Reit) sector responds to a crushing period of interest rate rises, Urban Logistics told investors after the market closed today that it had approached the board of Abrdn Property Income with an indicative counter bid.

It is proposing to pay 0.469 of its own shares for each in the Abrdn-managed fund, valuing API at 59.2p per share as at Monday’s close. It said this was 13% more than the current value of the recommended offer from Custodian and a 23% premium to API’s price before the Custodian deal was announced in January.