Brookfield, CPP Investments to Acquire LXP Industrial in $5.2B Deal
The REIT will go private following the sale’s closing.
Brookfield Asset Management and the Canada Pension Plan Investment Board have agreed to acquire LXP Industrial Trust and take the REIT private in a deal valued at $5.2 billion, including net debt and preferred equity.
The transaction has been approved by LXP’s Board of Trustees and is expected to close in the fourth quarter. The deal includes a 40-day “go-shop” period, which allows LXP to solicit bids from other suitors.
LXP’s portfolio includes about 53 million square feet of industrial space across 108 properties in the Sun Belt and Midwest. In prepared remarks, LXP CEO Thomas Eglin Jr. said that the sale is the culmination of the company’s strategy to become a pure-play industrial REIT.
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LXP shareholders will receive $61.20 per share in cash under the deal, representing a 12.3 percent premium to the firm’s 30-day volume weighted average price through July 17.
LXP, based in West Palm Beach, Fla., has retained BofA Securities Inc. as lead financial advisor, J.P. Morgan Securities LLC as co-financial advisor and Hogan Lovells Cadwalader US LLP as legal advisor.
Brookfield and CPP Investments are being represented by Citigroup Global Markets Inc. and Morgan Stanley & Co. LLP as financial advisors, plus Gibson, Dunn & Crutcher LLP and Thompson Hine LLP as legal advisors. DLA Piper LLP is serving as an additional legal advisor to CPP Investments.
Another REIT purchase hits the sector
The sale of LXP is the latest in a long string of mergers and acquisitions across the industry this year. Most recently, Global Net Lease agreed in May to buy Modiv Industrial Inc. for $535 million.
The latest buy is not the first for Brookfield this year, either. In February, the firm inked a deal to acquire Peakstone Realty Trust, a Southern California-based REIT, for $1.2 billion in cash. The move came after Peakstone had completed a disposition of its office portfolio, becoming an industrial specialist.
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