Alternative Income REIT’s (AIRE) biggest shareholder Glenstone is considering an all-cash takeover of the commercial property-focused real estate investment trust (REIT). Holding 24% of the shares, Glenstone wants to sell most of the assets and wind the REIT down.
However, Alternative Income REIT is in no position to ‘form a view on the merits or otherwise’ of Glenstone’s proposal.
Exit denied
The possible offer follows AEW UK REIT’s (AEWU) recent withdrawal from talks over a takeover of its smaller rival. Glenstone said this deal would have offered a ‘viable exit’ for its investment in Alternative Income REIT.
The fund currently trades at a 14% discount to net asset value (NAV) with a 7.8% dividend yield. Alternative Income REIT is one of the smallest UK REITs in a sector undergoing consolidation.
Glenstone is a REIT listed on Guernsey’s International Stock Exchange (TISE). It said it received no response to a letter to Alternative Income REIT’s board on 27 April. Glenstone had requested an explanation of the due diligence concerns which led AEW UK to withdraw its offer.
Alternative Income REIT has failed to entice another buyer. And so Glenstone has requested the company consider a managed wind-down and enter into talks over a cash offer.
Opaque on price
In today’s statement, Alternative Income REIT’s independent directors noted Glenstone’s potential offer does not include any offer price or range of prices. Nor does it set out the terms and conditions on which any offer might be made.
As a result, they have concluded that the proposal does not include terms capable of detailed evaluation.
The directors also noted this is not the first proposal received from Glenstone. On 12 November 2025, Glenstone lodged an indicative cash proposal at 66.5p. This represented a 20.8% discount to Alternative Income REIT’s NAV per share and an 11.3% discount to the 75p share price. The offer was rejected on the grounds it ‘fundamentally undervalued’ the fund.
However, Alternative Income REIT’s directors drew attention to Glenstone’s statement regarding its support for the potential offer by AEW UK REIT. The independent directors considered that this offer, pitched at a 3% discount to NAV, was ‘capable of recommendation’. And the directors ‘remain of that view’.
Quality on sale?
The independent directors at Alternative Income REIT recognise that the company’s market capitalisation is at the smaller end of the REIT market. Yet they ‘remain confident in the company’s portfolio and its prospects’.
Alternative Income REIT also talked up its ‘high-quality, fully let portfolio of 19 properties, predominantly let on long leases with index-linked rent reviews.’
The Winterflood view
Winterflood’s Emma Bird said that given Glenstone’s significant ownership of Alternative Income REIT and board representation, it is ‘not surprising’ to see it propose a takeover approach.
‘We await any further details regarding pricing to determine whether this would be an attractive outcome for investors,’ commented Bird.
Winterflood commended the two independent directors ‘for their commitment to working in the best interests of all shareholders, not just the largest.’
Read the press release here: https://www.alternativeincomereit.com/investors/
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