Warehouse illustration, not an LXP property. Brian Wangenheim / Unsplash, Unsplash License; uncropped.
Brookfield Asset Management and CPP Investments completed their acquisition of LXP Industrial Trust on Monday in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity.
LXP common shareholders will receive $61.20 per share in cash, the buyers said in their closing announcement. The company’s shares no longer trade on the New York Stock Exchange, and LXP is now privately held.
The closing completes the transaction announced in July, rather than representing a newly signed agreement. Shareholders approved the buyout in October, when November 2 remained an expected closing date subject to conditions.
107 properties join logistics platform
LXP’s portfolio consists of 107 industrial properties covering approximately 52 million square feet in Sunbelt and Midwest markets. The buyers described the portfolio as having strong occupancy and long-duration leases.
The properties will be integrated into Brookfield’s global logistics platform, which the company said spans more than 255 million square feet across over 850 properties in 20 countries. Those platform figures describe Brookfield’s wider logistics business, not the LXP portfolio alone.
Lowell Baron, chief executive of Brookfield Real Estate, said the acquisition reflected confidence in the long-term fundamentals of U.S. industrial property. He pointed to demand for large distribution facilities, limited supply, existing cash flows and potential rental growth.
Sophie van Oosterom, CPP Investments’ head of real estate, said the purchase adds a scaled portfolio of modern logistics properties to its U.S. real estate investments. Her comments framed the transaction as a long-term investment for the Canada Pension Plan Fund.
Public-market chapter ends
The completed transaction changes LXP’s ownership and removes its common shares from public trading. The $5.2 billion valuation is not simply the cash paid for common equity: it also includes the company’s net debt and preferred equity.
BofA Securities served as LXP’s lead financial adviser, with J.P. Morgan Securities as co-financial adviser. Citigroup and Morgan Stanley were lead financial advisers to Brookfield and CPP Investments, according to the announcement.
The buyers’ investment case rests on the performance of industrial and distribution properties over time. Their statements about future rental growth and returns are expectations, not guaranteed outcomes or new operating results disclosed at closing.
JBizNews Desk | New York
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