Industrials REIT Ltd has agreed to terms of the proposed acquisition by Blackstone that values the UK multi-let industrial property group at around €577m. Under the terms of the acquisition, Sussex Bidco LP will buy the London-based real estate investment trust for 168 pence per share. The Jersey-based Sussex Bidco was formed on March 24 for the purposes of the acquisition and is an entity owned indirectly by investment funds advised by Blackstone INC, the New York-based investment management company.
Industrials REIT board intends to recommend unanimously that shareholders vote in favour of the deal at the court meeting and at the general meeting. It indicated it considers the terms of the acquisition to be "fair and reasonable".The financial terms of the acquisition are final and will not be increased, except that Bidco reserves the right to increase the final offer price, Industrials REIT said.
Industrials REIT Chair Richard Grant said the group believed this offer was in the best interests of its shareholders, providing them with cash certainty at an attractive premium to the pre-offer share price."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," said Grant. "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."
"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," said James Seppala, head of Blackstone Real Estate Europe.