- Brookfield and CPP Investments completed their $5.2 billion all-cash purchase of LXP Industrial Trust, delisting the REIT and taking on 52M SF of logistics space.
- LXP shareholders received $61.20 per share; the portfolio was 96.6% leased in June at $5.28 per SF, with Amazon the largest tenant at 6.7%.
- The take-private lands as industrial demand firms, with third-quarter absorption at its highest since early 2023 and national vacancy down to 6.8%.
Two Canadian investors now own a Sun Belt and Midwest warehouse portfolio outright: Brookfield and CPP Investments closed their $5.2 billion buyout of LXP Industrial Trust, Bisnow reported.
The all-cash deal delists the South Florida REIT, whose portfolio now stands at 107 properties and 52M SF.
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The Price
Shareholders received $61.20 a share, which Bisnow described as a 12.3% premium to the REIT’s volume-weighted average price over the prior 30 days. When we covered the announcement in July, the same price was a 19.8% premium to the 90-day VWAP.
LXP’s management had 40 days to shop for a higher bid.
What They Bought
The portfolio stood 96.6% leased in June with a rent roll averaging $5.28 per SF, nearly all of it modern bulk distribution space. In an investor presentation, management put a $4.7 billion value on the portfolio, then 108 properties.
Amazon is the largest tenant at 6.7% of the portfolio, and the ten largest tenants make up about one-third of occupancy. Its properties sit in eight states, from Arizona and Texas to Georgia and Florida.
Recent Activity
$49.5 million of second-quarter FFO, up 5% year over year. It sold one property for $51 million and paid $103.2 million for 37 acres of infill land in Phoenix.
It also began two spec developments in Columbus.
The Buyers’ Case
Lowell Baron, CEO of Brookfield Real Estate, said the portfolio fits the firm’s conviction in long-term U.S. industrial fundamentals. CPP’s head of real estate, Sophie van Oosterom, said in a statement that LXP’s high occupancy and key logistics markets leave room to capture more value.
Why It Matters
Public-to-private deals like this move scale in logistics from the stock market to long-horizon capital. Bisnow cited Cushman & Wakefield data showing third-quarter absorption at its highest since early 2023, with demand above 70M SF for a second straight quarter.
National vacancy is 6.8%, the lowest since the end of 2024, per the same report.
What’s Next
Public investors lose a pure-play Sun Belt and Midwest warehouse REIT. Watch whether Brookfield and CPP add to the platform or trim assets.
