- Sixth Street has offered to acquire Plymouth Industrial REIT for $24.10 per share in cash, a 65% premium over the company’s most recent closing price.
- The proposed $1.07B deal follows a strategic partnership between the two firms, which began in 2024 and involved a $250M investment from Sixth Street.
- Plymouth’s board is reviewing the unsolicited offer, as Sixth Street already holds a 9.99% stake in the company and has committed financing in place via Goldman Sachs.
- The acquisition bid comes at a time of muted REIT M&A activity, as higher interest rates and macroeconomic uncertainty continue to weigh on deal volume.
Strategic Move Or Opportunistic Bid?
Boston-based Plymouth Industrial REIT has received a buyout proposal from Sixth Street, reports CoStar. The offer comes from the San Francisco-based investment firm, which is already a strategic partner of Plymouth. The nonbinding offer values Plymouth at $24.10 per share. That represents a 65% premium over its Monday closing price of $14.65. At that price, Plymouth’s market capitalization would rise from approximately $652M to $1.07B.
Sixth Street disclosed the proposal in a regulatory filing. The firm noted its current 9.99% ownership stake in Plymouth. It also stated its intention to fund the acquisition through a combination of cash and $1.5B in new debt. The financing is backed by a commitment from Goldman Sachs.
A Rocky Partnership History
The buyout offer follows a strategic alliance formed last summer, during which Sixth Street invested $250M in Plymouth through preferred equity and warrants. However, the structure was criticized by analysts for its complexity and cost.
Since the announcement of the investment, Plymouth’s stock has fallen 40%. BMO Capital Markets’ John Kim attributed the decline to the financing arrangement’s potential expense, tenant vacancies, and possible tariff pressures.
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What’s Behind The Deal
Sixth Street believes its existing relationship and asset-level understanding of Plymouth’s portfolio uniquely position it to close the transaction efficiently. In a letter, US real estate head Marcos Alvarado said the firm was open to a 30-day go-shop period but requested exclusivity to complete due diligence.
The firm has already helped Plymouth deploy capital into industrial acquisitions, including a 23-property portfolio in Ohio valued at $193M.
Market Timing Matters
The offer comes amid a sluggish period for REIT M&A activity. According to S&P Global Ratings, elevated interest rates and borrowing costs have slowed deal-making across the sector. The industrial segment has seen particular headwinds as tenant departures outpace move-ins for the first time since 2010, per CoStar.
Despite this, Sixth Street sees value in Plymouth’s portfolio. The REIT owns 226 industrial buildings totaling 32.1M SF across key markets.
What’s Next
Plymouth’s board and advisers will evaluate the proposal, with no timeline yet announced. If accepted, the deal would mark one of the largest industrial REIT transactions of the year, as well as a strategic consolidation play during a slow market cycle.
With Sixth Street’s financing in place and strong familiarity with Plymouth’s assets, the acquisition has a clear path forward. Final approval depends on the board’s review and any competing offers that may arise during the go-shop period.
