Shareholders have narrowly rejected plans to merge two property investment trusts.
The proposed £1.6 billion merger between two
property investment trusts has been vetoed by shareholders.
Britain's sixth-largest listed company would have been created had the plans to combine the UK Commercial Property Trust (UKCPT) and the F&C Commercial Property Trust (FCPT) gone ahead.
Yet strong opposition from F&C Reit has forced down the deal, with 50.07 per cent of shareholders rejecting the deal in an extremely tight vote.
F&C Reit had claimed that the merger would not be in the interest of either fund's
commercial development portfolio.
Chris Hill, chairman of the UKCPT, told the Daily Telegraph: "We are clearly very disappointed that we cannot proceed with the proposed merger, despite our shareholders voting strongly in support of the scheme.
"It should be highlighted that the FCPT resolution was turned down by the very narrowest of margins."
The Financial Times reported earlier this week that using property investment trusts to buy commercial assets is the best way to beat rising values.
Posted by Tess Nelson.
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