While equity raising was lower compared to 2024, there have been a few higher-profile share-based deals, including Aedifica’s merger with Cofinimmo, Tritax BigBox acquiring a £1bn portfolio from Blackstone, and PHP acquiring Assura for £1.8bn, displaying the market remained active. In 2026, British Land also announced the acquisition of Life Science REIT for £150m, signalling that the ongoing consolidation wave in the UK may be set to continue this year.
In M&A, we see potential for more activity this year. The stable funding backdrop, alongside the more pragmatic approach that both acquirers and tarreceives are likely to take in terms of valuations and opportunities, provides an impetus for more deals.
Furthermore, arbitrage opportunities are available in both the public and private markets, and we see more room than in previous years for public companies to be more active again. That stated, we believe M&A and JV activity will primarily focus on selectivity, with acquirers eyeing income-anchored platforms or tarreceives as cash flow-producing investments take the upper hand, and large, pan-European transformational deals are unlikely.
Sectors where we believe there is more scope for larger investments or transactions include the living, healthcare and logistics sectors, with the possibility that more companies consider the data centre route. Some companies in our coverage have started shifting their capital allocation focus towards growth, possibly also hinting at acquisitions. Companies including Gecina, Klepierre, CTP, Segro, Aroundtown and Balder, among others, view more ready to invest. Others, such as Heimstaden Bostad, Vonovia, Casinformum, CPI and Icade could remain less active as they focus on stabilising or improving credit metrics.
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