Brookfield, CPP Taking LXP Industrial Private in $5.2B Deal
Brookfield Asset Management and Canada Pension Plan Investment Board have agreed to take LXP Industrial Trust private in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity. West Palm Beach-based LXP owns one of the largest portfolios of warehouse and logistics facilities in the U.S., comprising approximately 53 million square feet across 108 properties in the Sunbelt and Midwest.
Founded as Lexington Realty Trust, LXP launched a repositioning strategy in 2018. “This transaction is the culmination of the LXP team’s successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio, and implement our development program,” said Thomas W. Eglin, Jr., chairman and CEO.
At Brookfield Real Estate, CEO Lowell Baron said, “LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets. 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.”
The merger agreement includes a 40-day “go-shop” period expiring at 11:59 p.m. New York City time on August 28. Subject to the terms and conditions of the agreement, LXP may terminate the transaction and the definitive agreement to enter into a transaction that constitutes a superior proposal, subject to the payment of a termination fee.
BofA Securities, Inc. is acting as lead financial advisor, J.P. Morgan Securities LLC is acting as co-financial advisor and Hogan Lovells Cadwalader US LLP is serving as legal advisor to LXP.
Citigroup Global Markets Inc. and Morgan Stanley are serving as financial advisors and Gibson, Dunn & Crutcher LLP and Thompson Hine LLP are serving as legal advisors to Brookfield and CPP Investments, with DLA Piper LLP serving as legal advisor to CPP Investments in connection with certain aspects of the transaction. Dechert LLP is acting as legal advisor to Citigroup Global Markets and Morgan Stanley.
Pictured: LXP’s 19 Bob Glidden Blvd. in Whiteland, IN, fully leased to Amazon.
