Response to proposed Tender Offer from Glenstone

RNS Number : 3532D

Alternative Income REIT PLC

27 October 2020

 

FOR IMMEDIATE RELEASE

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA.

27 October 2020

Alternative Income REIT PLC

("AIRE", the "Company" or the "Group")

RESPONSE TO PROPOSED TENDER OFFER FROM GLENSTONE PROPERTY PLC

The Board of Directors of Alternative Income REIT PLC (ticker: AIRE), the owner of a diversified portfolio of UK commercial property assets predominantly let on long leases, notes the announcement this morning by Glenstone Property PLC ("Glenstone").

The Board believes that Glenstone's proposed cash Tender Offer price of 59.25 pence per share for up to 20,125,000 ordinary shares in AIRE, representing up to 25.0% of AIRE's issued share capital, significantly undervalues the Company, representing a discount of 29% to the 30 June 2020 net asset value per share of 83.58 pence, underpinned by the robust rent collection data announced on 16 October 2020.

As outlined in the recent announcement of the results for the year ended 30 June 2020, the Board believes that the resilience of the existing portfolio and robust rent collection together with the recent significant reduction in the Group's overhead leaves the Group well positioned to pursue its proposed enhanced strategy, supported by its accomplished Investment Adviser, M7 Real Estate Limited, in rapidly changing market conditions suited to a more active and responsive approach. The Board believes that with additional investment it can deliver to its shareholders both strong performance and a secure and progressive dividend.

ENQUIRIES

Alternative Income REIT PLC
Steve Smith - Chairman	via Maitland/AMO below
M7 Real Estate Ltd Richard Croft	[phone]
Panmure Gordon (UK) Limited	[phone]
Alex Collins
Tom Scrivens
Chloe Ponsonby
Maitland/AMO (Communications Adviser)	[phone]
James Benjamin	[e-mail]

The Company's LEI is 213800MPBIJS12Q88F71.

Further information on Alternative Income REIT plc is available at www.alternativeincomereit.com ¹

NOTES

Alternative Income REIT PLC aims to generate a sustainable, secure and attractive income return for shareholders from a diversified portfolio of UK property investments, predominately in alternative and specialist sectors. The majority of the assets in the Group's portfolio are let on long leases which contain inflation linked rent review provisions.

The Company's investment adviser is M7 Real Estate Limited ("M7"). M7 is a leading specialist in the pan-European, regional, multi-tenanted real estate market. Majority owned by its senior managers, it has over 200 employees in 14 countries across Europe. The team manages over 835 properties with a value of circa €5.1 billion.

¹ Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website or any other website, is incorporated into, or forms part of, this announcement nor, unless previously published on a Regulatory Information Service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

 

END

 

 

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