Brookfield Asset Management BAM-T said on Monday it would buy industrial real estate investment trust Peakstone Realty Trust PKST-N for about US$1.2-billion, as it looks to cash in on demand for warehouses and industrial storage solutions.
Peakstone’s shares were up about 33 per cent in early trading following the news.
Demand for warehouses has skyrocketed as booming artificial intelligence infrastructure investments led to the creation of more data centres over the years.
Brookfield said it aims to use the deal as a means to expand its industrial real estate platform for the warehouse and industrial outdoor storage sector.
The company plans to acquire all of the outstanding shares of Peakstone for US$21 apiece in cash.
The proposed purchase price represents a premium of 34 per cent to Peakstone’s share price last Friday, it added.
The deal is expected to close by the end of the second quarter.
Citigroup Global Markets is serving as Brookfield’s financial adviser for the deal, while Gibson, Dunn & Crutcher LLP is its legal adviser.
Brookfield CEO Bruce Flatt said at a Goldman Sachs conference in December that demand for AI infrastructure was rising globally as governments and large cloud companies seek to warehouse computing capacity.
California-based Peakstone’s portfolio comprises 76 industrial properties, consisting of 60 industrial outdoor storage properties and 16 traditional industrial properties.
The company in December completed the sale of all its office properties, as it sharpened its focus towards becoming an industrial-only real estate investment trust.