£351m Abrdn property fund sale to GoldenTree agreed

Abrdn Property Income Trust (API) said it agreed to sell the vast majority of its portfolio to GoldenTree Asset Management LP for about £351 million.

The deal covers 39 properties, covering the Abrdn fund’s entire portfolio except for land at Far Ralia in the Cairngorms.

Abrdn said it reached an agreement with certain funds and accounts managed by GoldenTree Asset Management LP for the sale of the entire share capital of Abrdn Property Holdings Limited (APH), a wholly-owned subsidiary of API.

“The Transaction comprises the sale of 39 assets, being the Company’s entire investment property portfolio, with the exception of its interest in the land at Far Ralia,” said the fund.

“API’s debt facility with RBSI will be transferred in full to GoldenTree. The cash consideration for the purchase of the Portfolio is £351m, and the Company will receive net proceeds after adjusting for debt and other net assets of APH and subject to normal adjustments including those arising from the completion process.

“GoldenTree has paid a cash deposit of £35.1m, with the balance of the Consideration being payable in cash on completion.”

Abrdn Property Income Trust chair James Clifton-Brown said: “Since the shareholder vote on 28 May 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.

“The aims were to maximise the returns to shareholders but also to return cash to them as soon as possible. The full range of disposal strategies was considered from individual property sales to a wider transaction.

“Through an independent agent, Gerald Eve, the whole portfolio was marketed to potential buyers in an extensive and competitive process.

“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.”