- Brookfield Asset Management and Canada Pension Plan Investment Board have announced a definitive agreement to acquire LXP Industrial Trust for $5.2 billion in an all-cash deal, including net debt and preferred equity.
- Under the terms of the agreement, LXP shareholders will receive $61.20 per share in cash, representing a 12.3% premium to the stock’s 30-day volume weighted average price.
- The transaction has been unanimously approved by LXP’s Board of Trustees and is expected to close in the fourth quarter of 2026, subject to shareholder approval and other customary closing conditions.
- LXP stock surged nearly 4% in premarket trading following the announcement of the acquisition.
- The acquisition highlights demand for warehouse and logistics properties, supported by the growth of e-commerce and companies modernizing their supply chains.
- LXP owns one of the largest portfolios of modern warehouse and logistics facilities in the United States, comprising approximately 53 million square feet across 108 properties.
Brookfield Asset Management and Canada Pension Plan Investment Board are set to acquire LXP Industrial Trust for $5.2 billion in an all-cash deal, which includes net debt and preferred equity. The agreement, unanimously approved by LXP's Board of Trustees, offers shareholders $61.20 per share, reflecting a 12.3% premium to the stock's 30-day volume weighted average price and a 19.8% premium to its 90-day VWAP.13
The transaction is expected to close in the fourth quarter of 2026, pending shareholder approval and customary closing conditions. Following the acquisition, LXP will be delisted from the NYSE and become a privately held entity, with common share dividends suspended until the deal's completion.
LXP Industrial Trust boasts a significant portfolio of modern warehouse and logistics facilities, encompassing approximately 53 million square feet across 108 properties in key industrial markets throughout the Sunbelt and Midwest. This acquisition underscores the growing demand for warehouse and logistics properties, driven by the expansion of e-commerce and the modernization of supply chains.56
“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,” stated Lowell Baron, CEO of Brookfield Real Estate. Sophie van Oosterom, head of real estate at CPP Investments, emphasized that the partnership would yield sustainable investment returns for the CPP Fund. Thomas W. Eglin, Jr., chairman and CEO of LXP, noted that the board unanimously determined the transaction maximizes shareholder value.
The deal includes a 40-day “go-shop” period until August 28, 2026, allowing LXP to consider alternative acquisition proposals.
“Under the definitive agreement, LXP shareholders will receive $61.20 per share in cash, a 12.3% premium to the 30-day VWAP. The portfolio of 53 million square feet of modern warehouse and logistics facilities across 108 properties in the Sunbelt and Midwest attracted the buyers, and the deal includes a 40-day go-shop period expiring August 28.”
WSJ
The Globe and Mail
