The Wellcome Trust and the Board of Urban&Civic have reached agreement on the terms of a recommended cash offer by Wellcome for the entire issued and to be issued share capital of Urban&Civic. Under the terms of the Acquisition, which values Urban&Civic's issued and to be issued share capital at €559.3m (£506m). The terms of the acquisition will be put to Urban&Civic Shareholders at the Court Meeting and the General Meeting (which is expected to take place immediately following the Court Meeting).
Commenting on the announcement, Peter Pereira Gray, Managing Partner and Chief Executive Officer of the Investment Division of Wellcome, said: "We are very pleased to announce this recommended offer, which is fully aligned with our existing strategy of investing in businesses over the long term. The offer by Wellcome for Urban&Civic represents a compelling value proposition for Urban&Civic's shareholders at an attractive and certain value in cash today, reflecting the high quality of the business, its people and its future prospects. We know the Urban&Civic business and its experienced management team from our recent joint venture together. We welcome Urban&Civic's management and employees to Wellcome and look forward to working with them to invest in and develop the business further. We believe that the two groups' complementary strengths will create a business well-equipped to deliver Urban&Civic's long-term potential."
Commenting on the Acquisition, Alan Dickinson, Chairman of Urban&Civic, said: "The proposal rests on comprehensive industrial logic. Urban&Civic was established just ten years ago with the specific intention of disrupting prevailing residential presumptions and now leads in strategic site Master Development. Wellcome is steeped in property experience and has a strong record of alternative asset class investment. The acquisition provides a persuasive outcome for all stakeholders. A cash offer above up-to-date NAV outperforms the FTSE 350 Real Estate Index by some 70% since listing in 2014 and secures returns for our loyal and supportive specialist shareholder base, much of which has been with us for the whole journey. Comprehensive alignment with the objectives of Homes England and respective local authorities will be maintained and reinforced. The growing residential communities that are being created by Urban&Civic, with the involvement of valued and reputed partners, can all be confident in a continued determination to do things right. Finally, the move is especially timely as the Government consults on its Planning White Paper. The introduction of additional patient institutional capital is a key component of successful large site delivery to meet identified housing need."