Suspended 7IM fund holding Drum Income Plus REIT receives possible offer

7IM to support offer

Custodian Real Estate Investment Trust (CREI) has made a possible offer for the illiquid Drum Income Plus REIT (DRIP), of which Seven Investment Management (7IM) is the majority shareholder as it sits within their suspended Absolute Return and Income portfolios.

While the offer is currently theoretical, both 7IM and the board of DRIP have stated they would support the bid under the terms suggested in the possible offer statement. The proposal would see investors receive 0.535 ordinary share in Custodian for each whole share in DRIP, which currently trades at a discount of 14.6% to net asset value (NAV), according to data from the Association of Investment Companies (AIC). 7IM provides investors liquidity through partial merger of suspended funds At the value implied by the exchange ratio, the possible offer represents a premium of 8.8% to ...