Brookfield Asset Management (NYSE: BAM, TSX: BAM) has partnered with the Canada Pension Plan Investment Board to acquire LXP Industrial Trust (NYSE: LXP), a real estate investment trust focused on Class A warehouse and distribution investments in 12 markets across the Sunbelt and Midwest, for $5.2 billion in an all-cash transaction.
LXP’s portfolio encompasses approximately 53 million square feet across 108 properties. There was no announcement if the LXP leadership structure will change.
After the transaction is completed, LXP’s shares will no longer trade on the New York Stock Exchange and it will become a privately held company. However, the definitive agreement includes a 40-day “go-shop” period expiring at 11:59 pm EDT on Aug. 28 for LXP to solicit and consider alternative acquisition proposals.
Thomas W. Eglin Jr., chairman and CEO, stated, “This transaction is the culmination of the LXP team’s successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio, and implement our development program. The LXP Board unanimously determined that this transaction with Brookfield and CPP Investments fully maximizes value for our shareholders.”
“LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets,” said Lowell Baron, CEO of Brookfield Real Estate. “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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