Travelodge owner strikes £351m deal to buy Abrdn Property Holdings

GoldenTree has paid a cash deposit of £35.1 million and will pay the remainder once the takeover is completed.

Henry Saker-Clark
Friday 27 September 2024 08:41 BST
City firm Abrdn Property Holdings is to be bought by GoldenTree for £351 million (Victoria Jones/PA)
City firm Abrdn Property Holdings is to be bought by GoldenTree for £351 million (Victoria Jones/PA) (PA Wire)

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Abrdn Property Income Trust (API) has agreed to sell the vast majority of its portfolio to Travelodge owner GoldenTree Asset Management in a £351 million.

The London-listed trust told shareholders on Friday morning that US investment giant GoldenTree will buy its Abrdn Property Holdings subsidiary.

The operation covers 39 properties, covering the property trust’s entire portfolio except for land at Far Ralia in the Cairngorms.

GoldenTree has paid a cash deposit of £35.1 million and will pay the remainder once the takeover is completed.

It came after Custodian Property Income REIT’s bid to take over API collapsed earlier this year.

Custodian’s offer, which would have seen API shareholders receive 0.78 Custodian shares for each API share, failed to secure the necessary 75% approval rate needed at a vote in March.

Following the failed deal, shareholders voted in May to approve changes in order to allow the trust to be wound down and sell off its assets.

James Clifton-Brown, chair of API, said: “Since the shareholder vote on May 28 2024 to put the company into a managed wind down was passed, the board, alongside the investment manager, explored the most effective means of disposing of the company’s assets.

“Following a second round of bids, the board considered the GoldenTree Asset Management bid provided the best solution for shareholders, compared with the net present value of what might be achieved by way of individual sales over a longer period and represents a swift implementation of the shareholder resolution to conduct a managed wind down.

“I would like to thank the team at Abrdn who have delivered this outcome for shareholders.”

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