US private equity giant Blackstone and Industrials REIT have agreed the terms of a recommended cash acquisition of the REIT.
The final offer price of 168p represents a premium of approximately 42.2% to the closing share price of Industrials REIT of 118p on 31 March – the last business day prior to the commencement of the offer period, when the REIT had a market cap of circa £350m.
The acquisition values the entire issued and to be issued ordinary share capital of Industrials REIT, which was established in 2012, at approximately £511,196,472 on a fully diluted basis.
The directors of Industrials REIT intend to unanimously recommend the REIT’s shareholders vote in favour of the offer. A group of shareholders who represent approximately 22.4% of the ordinary share capital of Industrials REIT have also indicated to Blackstone’s Bidco that they intend to vote in favour of the proposed takeover.
Richard Grant, chair of Industrials REIT, said: “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.
“The board has therefore been able to evaluate today’s recommendation from a position of strength. Mindful of the growth opportunity in the industrial real estate sector, initial approaches were rejected. However, following careful consideration and reflecting on the uncertain macro-economic backdrop, 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 realised by Industrials if it were to remain listed. Additionally, the board is reassured by Blackstone’s views and approach to investing in the business and supporting our people.”
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.
“Blackstone has been an active investor in the UK for over 20 years and we have deployed over $27bn in the country over that period, supporting nearly 90 businesses. This acquisition sees us doubling down on the logistics sector and the UK which is our largest logistics market in Europe.”
