The half year results of Abrdn Property Income Trust reflects on a "testing time" for the company as it prepares to wind down.
It set out the sale of a Cairngorms estate it bought for £7.5mn three years ago will dictate when it is able to wind down.
The trust has now decided to sell off almost all of its investment property portfolio to GoldenTree for £351mn.
It comes after in the last half of 2023, the company proposed merging with Custodian Reit.
However, this was rejected by shareholders in March 2024 resulting in the decision to carry out a managed wind-down of the company.
The GoldenTree deal is made up of 39 assets, which is almost the whole portfolio excluding land at Far Ralia, a 1,400 hectare site in the Cairngorm National Park.
Board chairman, James Clifton-Brown, said: "The last two years have been testing for the company and all its stakeholders.
"The rapid rise in financing costs, the continued difficulties in the office market as it adjusted to the post-Covid world, the erosion of the yield advantage property companies had over gilts, the negative sentiment towards alternative assets and the wide discounts to net asset values in the closed end fund market all amounted to a very challenging backdrop.
"The board, having considered the potential alternatives including the present value of what could realistically be achieved by an asset-by-asset disposal, believes that this transaction represents an effective execution of the managed wind-down process.
"It provides greater price certainty and a quicker return of proceeds for shareholders through realising the substantial majority of the investment portfolio in a single transaction."
The timing of the final wind-down will be dependent on the sale of Far Ralia which is listed online for £12mn.
The results set out it is likely a liquidator will be appointed shortly after the completion of the sale of the portfolio at which point the company's shares will be removed from the London Stock Exchange and shareholders will be unable to trade.
It is expected the liquidator will then seek to sell Far Ralia, settle all company liabilities, close the company and distribute the remaining cash balances to shareholders.
tara.o'connor@ft.com
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