LXP Industrial Trust announced Monday that it has agreed to be acquired by Brookfield Asset Management and Canada Pension Plan Investment Board in an all-cash transaction valued at $5.2 billion, taking the industrial real estate investment trust off the public market.
Shares of LXP climbed 4% in premarket trading following the announcement.
Under the terms of the agreement, LXP shareholders will receive $61.20 in cash for each share they hold. That figure represents a premium of approximately 4.6% above the stock’s most recent closing price, according to Reuters calculations.
The deal reflects strong investor demand for warehouse and logistics properties, a sector that has benefited from the rapid expansion of e-commerce and ongoing efforts by companies to modernize their supply chains.
The transaction comes on the heels of Brookfield’s earlier agreement this year to purchase Peakstone Realty Trust in a separate all-cash deal worth roughly $1.2 billion.
Once the acquisition is complete, LXP shares will be delisted from the New York Stock Exchange. In the meantime, the company said it intends to release its second-quarter financial results as planned on July 29.
Earlier this year, LXP reported a 2.6% increase in first-quarter adjusted funds from operations to 80 cents per diluted share, totaling $47.3 million. Prior to the deal announcement, the company carried a market capitalization of approximately $3.5 billion.
Brookfield Asset Management operates as a global alternative asset manager, while CPP Investments oversees the assets of a Canadian pension fund. BofA Securities is acting as lead financial adviser to LXP, with J.P. Morgan serving as co-financial adviser.
