Tritax Big Box, a real estate investment trust (REIT) specialising in large distribution centres, has reached an agreement to acquire the entire shared capital of UK Commercial Property REIT.

The planned merger could create the fourth largest REIT in the UK, the companies have indicated, which would have a combined market capitalisation of £3.9bn.

Tritax Big Box has stated the possible offer would result in UK Commercial Property’s shareholders holding approximately 23.3% of the issued share capital of the enlarged company.

Based on the Tritax Big Box share price of 160.2 pence per share as of last Friday (9 February), the offer implies a value of 71.1 pence per UK Commercial Property share – which would equate to approximately £924m for the entire issued share capital of the group.

In a statement, Tritax Big Box suggested the move can bring together “complementary logistics-oriented investment portfolios” with a shared focus on “resilient and growing income”.

“The possible offer would form the fourth largest UK REIT based on market capitalisation, with a combined market capitalisation of circa £3.9bn, offering improved liquidity for all shareholders and expected associated cost of capital benefits,” the group’s joint statement said.

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