LondonMetric and Schroder REIT have provided an update on a proposed £396m offer for Picton Property Income.

The consortium said that since the announcement of its proposed offer last month, it has progressed with confirmatory due diligence, which is "advancing well".

It added that it is finalising the relevant transaction documentation with a view to announcing a firm intention to make an offer.

Under the terms announced on 12 May, Picton shareholders will receive 0.19 LondonMetric shares and 0.881 Schroder REIT shares.

The consortium said that the offer represents a “highly attractive offer for Picton assets with material upside benefits” for its shareholders.

Furthermore, it stated that the deal demonstrates a "creative and highly disciplined" deployment of capital, which is set to result in an asset mix complementary to both LondonMetric and Schroder REIT.

Chief executive at LondonMetric, Andrew Jones, and fund manager at Schorder REIT, Nick Montgomery, stated: "Since announcing our proposal on 12 May, we have made steady progress and are advancing towards a Rule 2.7 announcement.

"The transaction is expected to deliver a material and immediate uplift in dividend income for Picton shareholders, while allocating assets to the platforms that we believe are best positioned to unlock their full value and providing exposure to two enlarged, more liquid and complementary UK-listed REITs."

---