Brookfield Asset Management Ltd. and the Canadian Pension Plan Investment Board announced Monday an agreement to jointly acquire U.S.-based LXP Industrial Trust, a real estate investment trust focused on warehouse and distribution investments, for $5.2 billion.
LXP will be taken private as part of the deal, expected to close in the year’s fourth quarter, subject to approvals. LXP shareholders will receive $61.20 per share, a 12.3% premium on the company’s 30-day volume weighted average price.
LXP owns a portfolio of 53 million square feet of properties across the Sun Belt and Midwest regions of the U.S.
“The industrial sector, particularly in the U.S., continues to offer attractive long-term investment opportunities, supported by structural demand drivers including domestic manufacturing, evolving global supply chains and population growth across key Sunbelt markets,” said Sophie van Oosterom, CPP Investments’ head of real estate, in a statement.
CPP Investments managed C$793.3 billion ($564.65 billion) in assets and allocated 20% of its portfolio to real assets as of March 31.
“LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets,” said Lowell Baron, CEO of Brookfield Real Estate, in a statement. “The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management. We’re excited to partner with CPP Investments and build on LXP’s strong foundation.”
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Tags: Brookfield Asset Management, commercial real estate, CPP Investments, Real Assets