Suspended 7IM fund holding Drum Income Plus REIT receives possible offer

7IM to support offer

James Baxter-Derrington
clock • 2 min read

Custodian Real Estate Investment Trust (CREI) has made a possible offer for the illiquid Drum Income Plus REIT (DRIP), of which Seven Investment Management (7IM) is the majority shareholder as it sits within their suspended Absolute Return and Income portfolios.

While the offer is currently theoretical, both 7IM and the board of DRIP have stated they would support the bid under the terms suggested in the possible offer statement. The proposal would see investors receive 0.535 ordinary share in Custodian for each whole share in DRIP, which currently trades at a discount of 14.6% to net asset value (NAV), according to data from the Association of Investment Companies (AIC). 7IM provides investors liquidity through partial merger of suspended funds At the value implied by the exchange ratio, the possible offer represents a premium of 8.8% to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

Trustpilot