London and Stamford to merge
Property company London and Stamford Property is to merge with rival trust Metric in a deal that will leave it with three quarters of the enlarged company.
Property company London and Stamford Property is to merge with rival trust Metric in a deal that will leave it with three quarters of the enlarged company.
Under the terms of the merger, Metric shareholders will be entitled to receive 0.94 new ordinary shares for each Metric ordinary share, resulting in them owning 25%.
London & Stamford also said that following completion of the merger it intended to return £100m to shareholders of the company.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The announcement came the firm announced a 30% increase in underlying trading profit to £14.6m in the six months to the end of September, compared to the previous period.
Executive Chairman Raymond Mould said he was convinced the deal flow was increasing and that the quality of opportunities is high.
"The spread between initial yields on current opportunities and the cost of debt provides the potential for double digit cash on cash yields which can contribute to an increasing level of dividend cover and ultimately dividend growth," he said.
MM
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
-
Ground rents to be capped at £250 a year – what does it mean for you?The government has published draft legislation which would see ground rents capped at £250 per year for leaseholders. We examine what it means for homeowners and the housing market.
