UK real estate investment trusts Tritax Big Box REIT (LSE: BBOX) and UK Commercial Property REIT (LSE: UKCM) have reached an agreement for a potential £924 million all-share merger, the companies announced on Monday.
Under the proposed terms, UKCM shareholders would receive 0.444 new Tritax shares for each UKCM share they own.
The deal would create a combined company with a £3.9 billion market capitalisation. Tritax specialises in warehousing leased to e-commerce giants like Amazon and Ocado, while UKCM focuses more on shopping centres, offices and distribution hubs.
The merger comes amid a wave of consolidation in the London-listed property sector this year. UKCM shares rose 5% to 67.40p on the news, while Tritax dipped 2.7% to 155.80p.
