Blackstone lined up for Warehouse REIT bidding war victory
The US-based investment firm has the highest offer in place after Tritax Big Box declined to increase its £485m bid for the industrial landlord, which boasts a 6.9m sq ft portfolio worth £805m.
Blackstone had offered £470m to acquire Warehouse REIT in February. However, Tritax later approached warehouse with the £15m sweeter deal.
Blackstone counteroffered in July, stating that it would spend £489m for Warehouse and its 60-estate-strong portfolio. That offer has since secured the recommendation from the Warehouse board.
An auction process for the REIT was then set to take place, however Tritax has now made its offer a final one.
“While the Board of BBOX continues to believe that a combination of BBOX and Warehouse represents a compelling proposition for both sets of shareholders it does not believe that increasing the financial terms would be in the interests of BBOX shareholders,” Tritax said in a statement.
Warehouse REIT shareholders will be asked to accept Blackstone’s offer on 8 September.
Blackstone has been snapping up industrial portfolios across both sides of the Atlantic, most recently acquiring Crow Holdings’ 6m sq ft estate for $718m in April. Last year, the group spent £1bn to acquire the majority stake in Burstone’s European logistics portfolio. Blackstone has $315bn of investor capital under its management.
Warehouse REIT shares are priced at 112.8p as of this morning, down 1%. Blackstone’s shares were also down .63% on the US stock exchange. Back in the UK, Tritax’s shares were up .75%, priced at 139.94p.
