Ares JV to Pay $2.1B for Industrial REIT

October 27, 2025

The deal comes three months after Sixth Street Partners' bid for the same company.

Ares Alternative Credit Funds, together with Makarora Management, will acquire Plymouth Industrial REIT in an all-cash deal valued at $2.1 billion, including the assumption of certain outstanding debt.

The deal is on track to close in early 2026, subject to approval by Plymouth’s shareholders and other closing conditions. The REIT will sell all outstanding interests for $22.00 per share, which marks a 50 percent premium compared to the closing stock price of Aug. 18, 2025.

Back in August, Plymouth received another purchase offer. Sixth Street Partners, which owned 9.99 percent of the REIT’s stock at the time, sent an unsolicited, non-binding acquisition proposal for $24.10 per share.

The REIT’s portfolio spans throughout the Midwest and East Coast, according to prepared remarks by Chad Pike, founder & CIO at Makarora. He previously served at Blackstone before founding Makarora last year.

Plymouth wholly owned investments in 148 properties encompassing 32.1 million square feet across 11 states at the end of June, according to a second-quarter report. Additionally, the company also expanded its portfolio by 2 million square feet between March and June, paying $204.7 million.

KeyBanc Capital Markets and JP Morgan acted as Plymouth’s financial advisors, while Moelis & Co., along with Citigroup Global Markets served as Makarora’s financial advisors. Morrison & Foerster and Alston & Bird provided legal counsel for Plymouth. Greenberg Traurig and Simpson Thacher & Bartlett issued legal advice for Makarora, while Latham & Watkins and Kirkland & Ellis served as Ares’ attorneys. Dechert acted as Citi’s legal advisor.

CRE M&As may ease amid emerging alternatives

As investors looked to scale their businesses, several mergers and acquisitions have closed this year. Last July, BlackRock agreed to acquire ElmTree, a company with $7.3 billion in assets under management.

Yet, other ownership structures, including partnerships and joint ventures, may emerge as alternatives for mergers and acquisitions during challenging conditions, according to the 2026 Deloitte CRE Outlook Survey. Just 39 percent of respondents considered M&As likely in 2026, down from 48 percent in 2025.

In another commercial real estate trend noticed by Deloitte, publicly traded REITs appeared to be turning to partnerships with private capital providers, such as pension funds or sovereign wealth funds, to diversify their income and scale up their business models. However, other REITs had different approaches for expansion.

In July, Starwood’s publicly traded REIT closed on a deal to acquire Brookfield’s net lease platform for $2.2 billion. Dubbed Fundamental Income Properties, the traded assemblage comprised 467 properties encompassing 12 million square feet.