LXP Industrial Trust LXP-N will be taken private by Brookfield Asset Management BAM-T and Canada Pension Plan Investment Board in a US$5.2-billion all-cash deal, the industrial real estate investment trust said on Monday.
The acquisition highlights demand for warehouse and logistics properties, supported by the growth of e-commerce and companies modernizing their supply chains.
It follows Brookfield’s agreement earlier this year to buy Peakstone Realty Trust in a roughly US$1.2-billion all-cash transaction.
LXP shareholders will receive US$61.20 in cash for each share they own, representing a premium of about 4.6 per cent to the stock’s last closing price, according to Reuters calculations.
The REIT’s shares will no longer trade on the New York Stock Exchange after the takeover. It plans to report its second-quarter results as scheduled on July 29.
LXP in April reported a 2.6-per-cent rise in first-quarter adjusted funds from operations to 80 US cents per diluted share, or US$47.3-million. It had a market capitalization of about US$3.5-billion before the deal was announced.
BofA Securities is serving as lead financial adviser to LXP and J.P. Morgan as co-financial adviser.