Listed real estate sector delivers mixed returns

Europe (0.7%) leader, Asia (-6.1%) laggard

Real estate securities delivered mixed performances for the month, with Europe (0.7%) and Africa (0.1%) leading, while at tail of the pack, Asia fell 6.1%. As a result, the GPR 250 Index finished the month 1.1% lower. Year-to-date, the listed real estate sector is up 6.0% in local currency terms, with Americas (10.6%) leading and Oceania (-11.7%) lagging.

Two titans create apartment powerhouse

Equity Residential and AvalonBay Communities, Inc. announced a definitive agreement to combine in an all-share merger of equals with a market capitalization of over USD 50bn, creating one of the country's leading real estate companies with the differentiated scale, capabilities, and balance sheet strength to expand margins, accelerate growth and redefine leadership in rental housing. AvalonBay Communities, Inc.’s shareholders will receive 2.793 Equity Residential shares for each (1) AvalonBay Communities, Inc. share owned in the biggest ever merger of REITs.

LondonMetric Property Plc is building an empire

LondonMetric Property Plc and Schroder REIT Limited have agreed in principle on a joint all-share offer for Picton Property Income Limited, valuing the targeted company at approximately GBP 403.4m. Under the terms of the proposed takeover offer, Picton Property Income Limited shareholders would receive 0.190 LondonMetric Property Plc shares and 0.881 Schroder REIT Limited shares per (1) Picton Property Income Limited share.

BWP Trust implements 1 per 12 entitlement offer

BWP Trust raised approximately AUD 228m from a fully underwritten 1 per 12 pro rata accelerated non-renounceable entitlement offer (60,394,388 securities) priced at AUD 3.77 per security to strengthen its balance sheet.