KRG is pleased to announce our corporate credit rating has been upgraded by S&P “BBB” with a stable outlook. S&P issued a public statement, commenting “Kite Realty Group Trust has further deleveraged its balance sheet following its merger with RPAI. The company will likely improve its leased occupancy and rents over the next couple of years due to our view that demand for its well-located, open-air centers will remain healthy amid limited supply in some markets.” View the news release: https://lnkd.in/gTz-2Fkz . . . #kite #KiteRealtyGroup #KRG #CRE #CommercialRealEstate #REIT #REITs #retailCRE #shoppingcenters
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Dad | Husband | Audit Director at PwC UK, supporting global businesses | Passionate about construction, real estate and the wider built environment
Consolidation in the market is inevitable. If you look back over a number of years there have been many within the Real Estate space, especially at the REIT level. So the recent list has seen: - Tritax Big Box and UK Commercial Property - LondonMetric and LXi - Custodian and Abrdn Property Income - Shaftesbury and Capital & Counties Merging two real estate investment trusts (REITs) can yield several benefits. It enhances diversification by pooling different property portfolios, potentially reducing risk. Economies of scale can lead to cost savings through streamlined operations and increased negotiating power. Additionally, a larger combined entity may attract more investor interest and improve access to capital markets. Synergies from complementary expertise and resources can enhance overall performance and competitiveness in the real estate market. So why wouldn't you do it? If you look back over the last decade, there are five new entrants in the Top 10 listed real estate groups - three achieved by mergers. Merging isn't new and it will continue. So who might be next? https://lnkd.in/epMqf2bX #RealEstate #Deals #REITs
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We are pleased to announce the successful completion of our merger with LXi REIT plc. The Merger creates the UK's leading triple net lease REIT with a highly efficient and internally managed structure and a well capitalised balance sheet. Our £6.2 billion portfolio is aligned to structurally supported sectors of logistics, healthcare, convenience, entertainment and leisure with a strong exposure to assets that are mission critical to occupiers. The Company's sector leading WAULT of 19 years on FRI leases and 99% occupancy provides a strong platform for income longevity and growth with a high exposure to contractual rental uplifts as well as reversionary open market reviews. Andrew Jones, Chief Executive of LondonMetric, commented: "The Merger is a transformational deal that creates the UK's leading triple net lease REIT with full occupancy and exceptional income longevity and certainty of income growth. The new larger business will deliver better liquidity, material economies of scale, substantial cost savings with improved terms in both debt and equity markets. Our enlarged balance sheet will also allow better access to new opportunities of scale, which will drive accelerated earnings and dividend progression.” Read more here: https://rb.gy/15dyet
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As part of the merger announced by Barratt Developments PLC (LSE:BDEV) and Redrow PLC (LSE:RDW) today, the pair described the deal as a “uniquely compelling” opportunity to “create an exceptional UK homebuilder” – though some suggested it looked like two worse-for-wear individuals hugging each other for support. The reality is somewhere in between the utopian and cynical extremes, though the merger does have a defensive feel to it. Alongside accepting a takeover from its larger FTSE 100 rival, Redrow announced a 57% drop in half-year profits today and said subdued recent trading means its full-year results will be at the low end of its previous guidance, while Barratt’s interims showed a 70% plunge in profits and that housing completions are expected to fall 18.6-21.5% for the full year. More at #Proactive #ProactiveInvestors #LSE #BDEV http://ow.ly/IMPF105fA5K
Barratt Redrow merger is a defensive move as housing sector sits at pivotal point
proactiveinvestors.co.uk
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Portfolio Career, outside directorships, property and charity investment advisor, mentor and investor
The long awaited consolidation activity in the REIT sector is hotting up! In addition to the Industrials REIT acquisition by Blackstone in April last year and the CT Property Trust acquisition by London Metric, we now have the merger of LondonMetric with LXI which will create the UK's fourth largest REIT. Following on the heels of this is the proposed merger of Tritax Big Box REIT and UK Commercial and now the Abrdn Property Income Trust being offered for by Custodian REIT with competition coming from Urban Logistics REIT. What is driving this activity? The UK listed REIT sector is characterised by a long tail of sub scale companies mainly trading at large discounts to NAV with underlying investors frustrated by a lack of liquidity in the shares. These all share mergers offer the ability to to convert at reduced discounts with an opportunity for savings in management costs. More activity can be anticipated with the most successful mergers being seen where there is a strong portfolio fit and expertise in managing specific sectors. An alternative to corporate action available to Boards is a sale of assets and wind up to release value to shareholders. The market however is still marked by a lack of liquidity with heavy discounts for sub standard assets. These conditions can expect to persist in the short term, despite growing optimism on the future direction of interest rates. The FTSE EPRA UK Index returned 4.6% in 2023 with a some REIT's showing 20% plus increases in share prices at the end of the year. In comparison, the MSCI/AREF All Balanced Open Ended Property Funds Index returned -1.4%. I wouldn't rule out the quoted sector outperforming the direct market again this year. Both are beset by a lack of new equity being available but all paper mergers can deliver performance through reduced discounts, increased critical mass and cost efficiencies.
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💼 Co-op Bank Enters Exclusive Talks for Merger with Coventry Building Society. 🔸 Co-op Bank has initiated exclusive discussions with Coventry Building Society, exploring the potential benefits of merging these two financial powerhouses. 🔸 Coventry Building Society has submitted a substantial bid, valuing Co-op Bank at over £700 million, setting the stage for a potential merger that would result in a formidable entity boasting a combined asset base of approximately £90 billion. 🔸 Notably, Co-op Bank, which received crucial support from prominent US-based investors, including Bain Capital Credit and JC Flowers, has made significant strides in its financial journey. It made a remarkable comeback to profitability in 2021, reporting a pre-tax profit of £81 million for the first nine months of that year. 🔸 This merger represents a pivotal moment for Co-op Bank, as it signifies a return to mutual ownership and underscores the resilience and potential of the financial sector. #Finance #Banking #Merger #valuations #FinancialNews
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Primaris REIT Announces Strong Q2/24 and Raises Guidance “We are very pleased with the outperformance of our 2023 shopping centre acquisitions, contributing meaningfully to our increased FFO per unit guidance for this year. Integrating these assets into our larger national footprint and platform is increasing our relevance with both existing tenants, and exciting new-to-market retailers," said Alex Avery, Chief Executive Officer. "We are currently engaged in discussions with prospective counterparties for further acquisitions and dispositions, continuing to build our portfolio of leading enclosed shopping centres in Canada." Senior leadership will be hosting a conference call, webcast and presentation, tomorrow, August 1, at 10:00 a.m. (ET). You can log into the webcast HERE: https://lnkd.in/gpyMmY3u To read the full press release: https://lnkd.in/gA2s3a3z #reit #investment #cre #primarisreit #financialresults #earningsreport #commercialrealestate #retailrealestate #earnings #realestate #realassets #Q22024
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Why the merger? “…….the deal some suggested it looked like two worse-for-wear individuals hugging each other for support. The reality is somewhere in between the utopian and cynical extremes, though the merger does have a defensive feel to it……” #housebuilding #housebuilder #redrow #barratt #housing #construction #propertyinvestment #growthstrategy #potential #futuregrowth #ukeconomy #commercialproperty #buildings #sale #acquisitions #redevelopment #constructionjobs #commercial #newhomes #innovation #propertydeveloper #propertydevelopment #residentialconstruction #property #city #investment #development #commercialrealestate #ukrealestate #ukpropertymarket #realestate #investing
Barratt Redrow merger is a defensive move as housing sector sits at pivotal point
proactiveinvestors.co.uk
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🚧 Bellway Calls Off £720m Crest Nicholson Merger Bid 🚧 We've seen some significant developments in the housebuilding industry. Bellway has decided to walk away from its £720m bid to merge with Crest Nicholson. Despite earlier indications of strategic and financial synergy benefits, Bellway has opted to focus on its existing strengths. Last week, Bellway's trading update revealed confidence in their financial health, operational capabilities, and substantial land bank. With these robust assets, Bellway plans to continue its growth trajectory independently, avoiding the complexities of a major acquisition. 🏘️ Originally, Bellway had until 8 August to make a legally binding offer for Crest Nicholson. An extension was granted, and both firms showed positive progress in reciprocal due diligence. Despite this, the merger, which could have seen procurement synergies and dual outlets on at least 10 sites, will not proceed. Connecting and following us keeps you updated on such pivotal industry movements. #UKHousing #RealEstateNews #BusinessUpdates
Bellway calls off £720m Crest Nicholson merger bid
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Last month the board of Crest Nicholson accepted Bellway’s £720m takeover offer pending due diligence investigations of both sides. The board had previously rejected two offers from Bellway, most recently in May when Bellway’s offer of £650m was knocked back despite valuing Crest Nicholson at a 30% premium on its current share price. While Bellway went away to reconsider its offer, Crest Nicholson rejected an approach by rival house-builder Avant Homes. Avant had offered a £770m deal that would have given Avant shareholders 30% of the enlarged group and retained Crest Nicholson’s stock exchange listing. On 3rd July, following further discussions, Bellway submitted an offer valuing the business at £720m and giving Crest Nicholson shareholders 18% of the combined group. Bellway said that, following the merger, it would retain and use the Crest Nicholson brand across the combined group. On 10th July, Crest Nicholson said it was minded to recommend shareholders approve a revised £720m takeover bid should the offer be formalised. Under stock exchange takeover rules, Bellway then had until 8th August to either make a firm offer or walk away.
Bellway abandons Crest Nicholson takeover
theconstructionindex.co.uk
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SaaS & Fintech M&A Advisor | Helping Companies Unlock Remarkable Exits and Acquisition Opportunities
Fiserv’s Strategic Chess Moves in M&A: An Observer’s Insight As 733Park closely monitors the evolving landscape of financial technology, Fiserv’s recent strategic maneuvers have certainly caught our eye. According to a report by Payments Dive on March 15th, 2024, Fiserv, under the keen guidance of CFO Bob Hau, is actively exploring "tuck-in type" mergers and acquisitions, signaling a savvy approach to expansion in the fintech sector. Over the past four years, Fiserv has invested an impressive $2 billion across 15 transactions, averaging about $150 million per deal. Their acquisition strategy isn’t just about expanding their portfolio; it’s about careful selection and integration, ensuring each acquisition aligns with their broader business objectives. Their largest deal to date? The acquisition of Finxact for $650 million in 2022 significantly bolstered their core banking capabilities. What’s particularly intriguing is Fiserv’s openness to larger, value-accretive opportunities, as noted by Hau. This strategic flexibility is essential in an industry where scale can often dictate market leadership. The potential acquisition of Shift4, discussed in the Payments Dive article, could mark a pivotal expansion of Fiserv’s merchant acquiring capabilities, particularly within the restaurant and hospitality sectors. This would diversify their revenue streams and position them well against the shifting dynamics of retail from physical to online spaces. At 733Park, we view Fiserv’s M&A strategy as a clear indicator of their commitment to not just keeping pace with the industry but leading it. Their methodical approach to acquisitions demonstrates a nuanced understanding of the fintech ecosystem’s complexities and how best to navigate them for sustained growth. #Fiserv #733ParkInsights #FintechMergers #DigitalPaymentSolutions #StrategicAcquisitions #FinanceSectorGrowth #payments #mergersandacquisitions
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3moFantastic update!