US investment giant Blackstone has agreed the terms of the £470m cash acquisition of Warehouse REIT.
The terms represent a cash offer of 109p per share plus the 1.6p interim divided paid in April, resulting in a total consideration of 110.6p per share.
This is below the total 115p per share offer tabled by Blackstone in March this year. Blackstone submitted a revised bid for the business following its due diligence process, which questioned the valuation of Warehouse REIT’s development asset at Radway Green.
The revised offer represents a premium of approximately 34.2% to the closing price of Warehouse REIT shares on 28 February 2025.
Neil Kirton, chair of Warehouse REIT, said: “Warehouse has, since its IPO in 2017, delivered strong operational performance that demonstrates the quality of our portfolio and our locations, and the resilience of the multi-let industrial market. Warehouse has grown from an initial seed portfolio of 27 freehold and long leasehold warehouse assets, to a diversified asset portfolio valued at £805.4m, achieving a total annualised accounting return of 7.7% since IPO.
“Despite this success, the company’s growth has been constrained by the weak macroeconomic backdrop, high interest rates, and an inability to raise new equity. The Warehouse independent directors therefore, following careful consideration and reflecting on the uncertain macroeconomic backdrop, believe that the cash offer from Blackstone provides shareholders the opportunity to receive cash at an attractive premium of 34.2% to the undisturbed price. As a result, the Warehouse independent directors have concluded that the acquisition is in the best interests of Warehouse shareholders and Warehouse as a whole.”
James Seppala, head of Blackstone Real Estate Europe, added: “As one of the largest investors in logistics, we have a high conviction in the demand drivers supporting this sector across the UK. We believe the strength of our UK platform, our management teams, their operational capabilities and our capital will help Warehouse capitalise on the opportunities ahead. Blackstone has been investing in the UK for over 20 years and over this period we have deployed over £35bn, supporting businesses that employ over 40,000 people. This acquisition builds on this momentum and reinforces our long-term commitment to the UK.”
