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Brookfield and CPPIB to take LXP Industrial Trust private in $5.2B deal
The all-cash offer includes a 12.3% premium to LXP’s 30-day weighted average share price of $61.20 and is expected to close in the fourth quarter, pending shareholder approval.
Brookfield Asset Management and Canada Pension Plan Investment Board are partnering on an all-cash bid to acquire LXP Industrial Trust for $5.2B, moving the South Florida industrial REIT and its 108 properties off the public market. The purchase would create a 53 million square foot portfolio across the Sun Belt and Midwest, according to Bisnow.
The bidders agreed to pay a 12.3% premium on LXP’s 30-day weighted average share price of $61.20, and the deal is expected to close in the fourth quarter subject to shareholder approval. CPP Investment Board said the industrial sector in the U.S. offers long-term opportunities backed by structural demand drivers, including domestic manufacturing, evolving global supply chains, and population growth in key markets.
LXP will still report second-quarter results on July 29 but will skip the customary conference call, the REIT said in its acquisition announcement. The transaction includes a 40-day window in which LXP can look for a better deal and swap buyers after paying a termination fee, Bisnow reported.