Blackstone funds to buy Industrials REIT for €578m

UK real estate investment trust Industrials REIT has agreed to a £511.2 mln (€578.1 mln) takeover by Sussex Bidco LP, a company indirectly owned by investment funds advised by Blackstone Inc.

Under the deal, Industrials REIT shareholders will receive £1.68 (€1.90) per share in cash, reflecting a premium of 42.4% on 31 March, the day before the company said it would recommend the deal if a formal offer was made.

Industrials REIT said this offer valued the group at around £511.2 mln (€578.4 mln) on a fully diluted basis, while the enterprise value of the deal, including debt, amounts to £700 mln (€792 mln).

Both parties stated that the financial terms of the acquisition are final and will not be increased.

Industrials REIT chairman, Richard Grant, said: ‘We believe this offer is in the best interests of Industrials shareholders providing them with cash certainty at an attractive premium to the pre-offer share price and significantly accelerating the value that could be realized by Industrials if it were to remain listed. Over the past few years Industrials has successfully pivoted its business to focus on the UK MLI segment. Strong occupier demand has continued to drive substantial rental uplifts across our portfolio and our assets remain highly affordable and continue to attract an increasingly diverse range of businesses. Despite our strong financial position and focused strategy, the company's access to capital and ability to deliver shareholder value is naturally subject to external factors, many of which are outside of our control.’

James Seppala, head of Blackstone Real Estate Europe, added: ‘As one of the largest investors in logistics real estate globally and in the UK, we have been preparing for this cycle for a long time and have assembled a high-quality portfolio and positioned it for growth. We have the track record, capital and scale to enable Industrials to capitalise on the opportunities ahead.’

The deal is expected to become effective in Q2 2023, subject to customary approvals and conditions.

Industrials REIT was advised by Numis Securities and Eastdil Secured International.


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