The board of the F&C Commercial Property trust (FCPT) has agreed to a takeover by the Ignis-managed UK Commercial Property trust(UKCPT).
Under the terms of the deal, FCPT Shareholders will receive new UKCPT shares on a NAV for NAV basis. Alternatively, there is the option of a cash exit for FCPT shareholders at 91p per share.
Subject to shareholder approval, the enlarged UKCPT is expected to become the sixth largest UK listed property company, with a market capitalisation of £1.6bn. The proposed merger will lead to a reduction in the TER to 0.7%.
UKCPT chairman Chris Hill says: "We are of the firm belief that the benefits and economies of combining the two highly complementary portfolios, together with the anticipated improvement in the liquidity of the enlarged company's shares, will enhance value for all our respective shareholders."
This is the third investment trust mandate F&C has lost this year.
In February, Edinburgh Partners took over the renamed European Investment trust, while First State is due to take of control of the Pacific Assets trust in July.
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