Sixth Street Offers to Buy Plymouth Industrial at $1.1B Valuation
The prospective buyer already owns a 10 percent stake in Plymouth.
Sixth Street Partners has sent out an unsolicited acquisition proposal for Plymouth Industrial REIT for the purchase of all of the company’s outstanding shares of common stock.
The prospective buyer already owns a 9.99 percent stake in the company and proposed to purchase the rest at $24.10 per share. The proposal has been filed on Aug. 19 through the U.S. Securities and Exchange Commission.
Plymouth Industrial REIT is valued at nearly $1.1 billion for the deal, according to The Wall Street Journal. Sixth Street plans to fund its acquisition through a mix of cash from its investment vehicles and nearly $1.5 billion in new acquisition funds.
The REIT’s portfolio consists of 226 buildings totaling 32 million square feet across 19 markets, according to its website. Most of Plymouth’s footprint is spread across metro Cleveland, Cincinnati, Indianapolis and Memphis, Tenn., where the company owns and operates the largest portion of its portfolio—of 6.4 million square feet.
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The news comes after the company expanded its industrial presence earlier this year, when it acquired a 2 million-square-foot portfolio in Ohio. Plymouth Industrial REIT paid $193 million for 21 buildings across several markets.
Additionally, Plymouth also has a joint venture stake in Chicago, where its footprint totals more than 5 million square feet. Last year, Sixth Street Partners launched a $500 million joint venture in which it picked up a 65 percent stake in the company’s Chicago portfolio.
KeyBanc Capital Markets Inc. will work as financial advisor on behalf of Plymouth Industrial REIT, with Morrison & Foerster LLP as legal counsel.
Industrial M&A activity so far in 2025
Since the start of the year, there has been a rise in CRE mergers and acquisitions, suggesting a potential upcoming dealmaking cycle.
One recent example in the industrial space is S2 Capital’s definitive agreement to buy Fort Capital. With this purchase, the company will create a new industrial platform while adding a portfolio of 11 million square feet in Texas.
Another significant deal expected to close in the third quarter is BlackRock’s purchase of Elm Tree Funds, which has some $7.3 billion in assets under management. Expanding the buyer’s reach into the build-to-suit net lease industrial sector, the acquisition will create a platforms dubbed Private Financing Solutions, with HPS Investment Partners set to be a part of it.
Apollo also ventured into the space recently. In February, the company entered into a definitive purchase agreement with Bridge Investment Group Holdings Inc., in an all-stock deal valued at $1.5 billion.
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