Urban Logistics has agreed to a takeover offer from LondonMetric, valued at £698.9m.

As part of the deal, for each Urban Logistics share held, shareholders will be entitled to receive 0.56 new LondonMetric shares and 42.8 pence in cash.

The offer represents a premium of 21.8% on Urban Logistics’ share price on the "undisturbed date".

The transaction is LondonMetric’s latest acquisition, after striking takeover deals with firms such as A&J Mucklow in 2019, CT Property Trust Limited in 2023 and LXi REIT in 2024.

The acquisition is set to result in a combined group that will have a £7.3bn portfolio and a logistics platform with a portfolio of £4bn.

Chief executive officer at LondonMetric, Andrew Jones, said that the deal is an "excellent transaction" that grows the firm’s urban logistics platform and supports its triple net strategy.

He added: "Urban warehousing remains our strongest conviction call for organic rental growth across the UK real estate market. The portfolio is well located, highly reversionary and our asset management focus will ensure that it delivers reliable, repetitive and growing income-led returns.

"We have a demonstrable track record of successfully executing on M&A and we expect the transaction will deliver substantial synergies, cost savings and accelerated earnings growth. Our scale will continue to deliver enhanced access to capital, more debt optionality, increased share liquidity and larger investment opportunities."

Independent non-executive chairman at Urban Logistics, Nigel Rich, concluded: "Since its IPO in 2016, Urban Logistics has assembled an exceptional portfolio of single-let, 'last mile' assets and has outperformed the UK REIT sector and other relevant benchmarks.

"The board of Urban Logistics believes that the acquisition offers Urban Logistics shareholders a premium price for their shares, an attractive combination of cash and share consideration and ongoing exposure to the logistics sector via a company of greater scale and liquidity."

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