LONDON (ShareCast) - (Sharecast News) - LondonMetric Property posted a 3.5% increase in full-year net rental income on Thursday as it announced the acquisition of Midlands-based real estate investment trust A&J Mucklow in a cash and stock deal that values it at around £414.7m.
Under the terms of the transaction, LondonMetric will pay 655.2p a share, made up of 204.5p in cash and 2.19 new LondonMetric shares.

It said the combined group will create a larger and more resilient company with gross property assets - including its shares in joint ventures - of £2.3bn.

LondonMetric chairman Patrick Vaughan said: "I am pleased that we have agreed a £414.7m recommended offer to acquire A&J Mucklow. The combination of their assets, of which approximately 70% is in distribution and industrial property, is consistent with our strategy of increasing our urban logistics exposure. The combination has compelling strategic and portfolio rationale with strong operational and financial benefits.

"I am delighted to say that we think this deal will be immediately earnings enhancing for shareholders. There will be work to do, but we are excited by the reversionary and asset management potential of their assets which will underpin and further support our progressive dividend policy."

LondonMetric also released its results for the year to 31 March, which revealed a 3.5% jump in net rental income to £93.8m and a 3.5% increase in EPRA earnings per share to 8.8p.

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