Weekly wrap: Home REIT, Capital & Regional and more

We continue our updates on investment trusts with news from Home REIT, Capital & Regional, Invesco Perpetual UK Smaller Companies and BioPharma Credit.

Home REIT to wind down

Home REIT, which was established to house the homeless, is to sell its assets and be wound up. It said pressure from its main lender to repay a loan by the end of the year gave it little option. The shares are currently suspended, although the trust said it hoped trading would resume once delayed financial results had been published, which it expected to take place before the end of the current quarter.

Capital & Regional attracts bid interest

A bidding war is in prospect for Capital & Regional, the real estate investment trust that specialises in shopping centres. The company announced late last week that two parties had expressed interest in buying it, although no firm offers had been made and there was no indication of the price at which any bid might be pitched. The takeover watchdog has given the potential bidders until the middle of next month to table an offer or walk away. Amusingly, this deadline is referred to as the ‘PUSU’ deadline, for ‘put up or shut up’.

Invesco Perpetual UK Smaller Companies return of capital

Investors in Invesco Perpetual UK Smaller Companies are to be offered the chance to convert 10% of their shares to cash at a 2.5% discount to net asset value, compared with a current discount in the market of 13.2%. The return of capital will be carried out via the payment of a special dividend on any shares put forward by investors to benefit from the offer; those shares will be cancelled after the dividend is paid. Investors may ask to receive the special dividend on more than 10% of their shares but such excess applications will be met only to the extent that other investors do not take up the offer.

Relief for BioPharma Credit

A troubled holding in BioPharma Credit’s portfolio has had its acquisition by Roche, the drugs giant, approved by the competition regulator. This reduces the uncertainty the trust faced about the potential need for it to provide further funding to the holding, LumiraDx, before the takeover. BioPharma’s shares, which are denominated in dollars, rose by 3% when the news was made public.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing, please read the relevant key information document which contains important information about each investment trust. The shares in these investment trusts are listed on the London Stock Exchange and their price is affected by supply and demand. Investment trusts can gain additional exposure to the market, known as gearing, potentially increasing volatility. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.