19 January 2024

Mattioli Woods plc

("Mattioli Woods", "the Group" or "the Company")

Potential growth of Custodian Property Income REIT plc

Mattioli Woods plc (AIM: MTW.L), the specialist wealth and asset management benefits business, notes the announcement today by Custodian Property Income REIT plc ("CREI") of the proposed all share merger ("Merger") of CREI with abrdn Property Income Trust Limited ("API"). The Group's subsidiary, Custodian Capital Limited ("CCL"), acts as discretionary investment manager to CREI and will continue in that role for the enlarged REIT should the Merger complete successfully.  

CREI and API share an income-focused property investment strategy and the Merger would bring together two complementary portfolios to create a differentiated REIT with a combined portfolio of over 200 assets and a combined property value in excess of £1.0 billion.

In its capacity as discretionary investment manager to CREI, CCL anticipates that successful completion of the Merger has the potential to increase its recurring annual revenues by circa £1.7 million.

Ian Mattioli, Chief Executive, Mattioli Woods and Chair, Custodian Capital Limited, comments:

"We established our property investment management business in 1999 to allow our clients to access direct property investment through syndication with the benefits of secure income, diversification and long-term value growth. This initiative has grown both as a private and public investment offering over the last 25 years.

"Since the launch of CREI in 2014, seeded with the initial portfolio of £90 million, it has raised monies in the public markets to grow assets under management to over £600 million. The announced proposed merger of CREI with API is the next stage and takes gross assets under management of CREI to over £1 billion, while staying true to the 25-year strategy of providing long-term, secure income for investors, from a portfolio of diversified UK real estate."

Richard Sheperd-Cross, Managing Director of Custodian Capital Limited, comments:

"As we approach the 10-year anniversary of the launch of CREI, the announcement of the proposed all-share merger of CREI with abrdn Property Income Trust is an exciting development for CCL in its role as investment manager to the combined portfolio. The enlarged REIT provides additional opportunities for CCL in our role as investment manager. We welcome the ability to manage a larger portfolio and for the opportunities that this creates for our clients and team."

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