Matthew Norris, manager of the TM Gravis UK Listed Property (PAIF) Fund, has shared his thoughts on the Warehouse REIT Auction.
The move to an auction process for Warehouse REIT is a welcome step towards discovering its true worth. Private equity’s earlier bid may have been ‘fair’ on paper, but fair is not the same as ‘full’.
The real risk is that long-term investors are forced out, just as multi-let industrial estates are reaching an inflection point. A cash offer brings certainty, but also certainty of no further upside. By contrast, stock from a listed peer such as Tritax Big Box would allow shareholders to stay invested, share in synergies, and participate in future growth.
It’s crucial that investors remember the distinction between price, value and worth. Price is what trades in the market, value comes from fundamentals, but worth is what a motivated buyer will pay when strategic logic is at play.
The critical question now is whether this auction delivers not just fair value, but full worth for shareholders.
