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Blackstone's GBP 489 million (USD 660.8 million) offer for Warehouse REIT has become unconditional, clearing a key step toward completing the acquisition of the UK-based logistics property trust. The U.S. private equity group raised its bid to 115 pence per share in July after initially proposing GBP 470 million earlier in the year, a move that convinced Warehouse REIT's board to change its recommendation from rival bidder Tritax Big Box REIT. The bidding contest ended in August when Tritax withdrew its GBP 485.2 million cash-plus-stock proposal. Blackstone's successful bid highlights the strong investor interest in logistics real estate driven by ecommerce demand.
Blackstone has confirmed that its takeover offer for Warehouse REIT is now unconditional. The transaction is valued at GBP 489 million (USD 660.8 million), with shareholders receiving 115 pence per share, made up of 113.4 pence in cash and 1.6 pence representing the latest dividend. This unconditional status means that the U.S. private equity group has secured the necessary approvals and can move forward with completing the deal. Advertisement
Warehouse REIT had been at the centre of a competitive bidding process for several months. The independent directors of the company had initially supported a GBP 485.2 million bid from Tritax Big Box REIT, which included both cash and shares. However, after Blackstone increased its offer in July to 115 pence per share, the board revised its stance and began backing Blackstone's proposal. Following this, Tritax terminated its earlier bid in late August, effectively ending the contest.
The process began earlier this year when Blackstone put forward a GBP 470 million proposal in March. While that initial offer gained traction, the deal later encountered challenges around valuations of certain assets, which led to a revised approach. Blackstone then lifted the bid to its current GBP 489 million level in July, which ultimately secured the support of Warehouse REIT's board.
Shares of Warehouse REIT, which is headquartered in London and specialises in urban and regional logistics properties, rose by 1.2% at the start of trading after the announcement that Blackstone's offer had become unconditional. The rise reflects investor confidence in the certainty of the deal moving ahead.
The takeover highlights a growing trend of consolidation in the UK's listed real estate sector. Logistics assets in particular have attracted strong interest from global investors, as demand for warehouse space has continued to expand due to ecommerce growth and supply chain changes. At the same time, higher borrowing costs and pressure on valuations have made mid-sized REITs like Warehouse more open to takeover interest.
Source- Reuters
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