The monopoly of real estate investment: Why control commands a premium 🎩🏠 A wave of private equity takeovers is sweeping through the UK REIT sector, with deep-pocketed buyers snapping up high-quality, income-generating assets at significant discounts. The appeal? Instant exposure to commercial property mega-trends like the ageing population, generation rent, and digitalisation, plus the ability to dictate development and unlock long-term value. Yet recent bids, like KKR’s approach for Assura, highlight a key question: Are these deals truly offering fair value? Many REITs are trading at deep discounts to net asset value (NAV), but a control premium, reflecting full ownership benefits, should be central to any negotiations. 🚨 Boards and investors must recognise that the value of a business extends beyond bricks and mortar. Intellectual capital, operational expertise, and strategic positioning all matter. If private equity sees the potential, public markets shouldn’t sell themselves short. Matthew Norris, Director of Real Estate Securities at Gravis, recently explored this theme in Investment Week, highlighting why control carries a premium in corporate takeovers and why REITs must push for fair value in private equity bids. The takeaway? Undervaluing control means missing out on the biggest wins. Read the full article here: https://lnkd.in/ezHGw3rQ (No information contained in this post should be construed as providing financial, investment or other professional advice and should not be considered as a recommendation, invitation, or inducement to subscribe for, dispose of or purchase any such securities. Professional investors only. Capital at risk. Past performance is not a guide to future performance.) #REITs #PrivateEquity #Acquisitions #Monopoly
