This is not an investment advice, make your own research before investing
I discover this opportunity through the Liquidation Stocks Substack, which I highly recommend (check his Substack and X account).
I also suggest reading the analysis by Real Assets Value, which covers real estate valuation better than I do. My focus is mainly on balance sheet valuation and my thoughts on the quality of the lease clients and properties.
abrd European Logistics Income is an investment trust that focuses on acquiring and managing logistics properties.
Due to liquidity issues and the company consistently trading at a discount from its Net Asset Value (NAV), the board and management decided to liquidate the trust after a strategic review. This was announced on May 20, 2024, in a press release.
We know that the company invests in high-quality logistics properties with reliable tenants and inflation-linked contracts.
According to the 2024 Annual Report, the company’s property portfolio includes:
Here is the history of properties sold by the company:
- March 2024: A warehouse in Meung, France, sold for €17.5 million (matching its book value).
- January 2025: A property in Oss, Netherlands, sold for €15.7 million (1.9% above its 2023 book value).
- January 2025: Two properties in Spain (Coslada, Madrid, and Barcelona) sold for €29.7 million (11% above their Q3 2024 valuation).
In May 2025, the company announced (in its latest unaudited NAV update) that five assets are under offer. After repaying the debt, the proceeds will be distributed to shareholders.
Historically, the company has sold properties at or above their book value, often with a premium. I am confident this trend will continue.
According to the May 2025 unaudited NAV update:
At the current exchange rate of €0.845 = £0.71, with the share price at 59.40 GBX, there is a potential upside of approximately 19%.
Real Asset Value estimated the liquidation timeline to be 12–18 months, while Liquidation Stocks predicted 2 years. I believe it will be closer to 2 years, which suggests an Internal Rate of Return (IRR) of about 9.09% (quite good).
I opened a position in this special situation at 57.60 GBX.