Brookfield Asset Management and Canada Pension Plan Investment Board (CPP Investments) are acquiring listed US real estate investment trust (REIT) LXP Industrial Trust in a $5.2bn (€4.5bn) all-cash take-private deal.
The investor duo has agreed to acquire NYSE-listed LXP, which owns a portfolio of modern warehouse and logistics facilities spanning approximately 53m sqft across 108 properties.
The assets are predominantly located in industrial markets throughout the US Sunbelt and Midwest.
Under the terms of the agreement, LXP shareholders are expected to receive $61.20 per share in cash, representing a 12.3% premium to LXP’s 30-day volume-weighted average price.
The $5.2bn transaction value includes net debt and preferred equity.
Lowell Baron, CEO of Brookfield Real Estate, said: “LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets.
“The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management. We’re excited to partner with CPP Investments and build on LXP’s strong foundation.”
Sophie van Oosterom, managing director, head of real estate at CPP Investments, said: “The industrial sector, particularly in the US, continues to offer attractive long-term investment opportunities, supported by structural demand drivers including domestic manufacturing, evolving global supply chains and population growth across key Sunbelt markets.
“We look forward to partnering with Brookfield and combining their operating expertise with a well-positioned portfolio to generate sustainable investment returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”
Thomas W Eglin Jr, chairman and CEO of LXP, said “This transaction is the culmination of the LXP team’s successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio, and implement our development programme.
“The LXP Board unanimously determined that this transaction with Brookfield and CPP Investments fully maximises value for our shareholders.”
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