Brookfield Asset Management and the Canadian Pension Plan Investment Board (CPP Investments) have announced an agreement to acquire LXP Industrial Trust, a U.S.-based real estate investment trust, for $5.2 billion. This deal will take LXP private and is expected to close in the fourth quarter of the year, pending approvals. LXP shareholders will receive $61.20 per share, which is a 12.3% premium over the company’s recent trading price.
LXP owns a portfolio of properties totaling 53 million square feet across the Sun Belt and Midwest regions of the U.S. Sophie van Oosterom, head of real estate for CPP Investments, highlighted that the U.S. industrial sector is attractive due to factors such as domestic manufacturing and evolving supply chains. CPP Investments manages approximately C$793.3 billion ($564.65 billion), with 20% of its portfolio allocated to real assets.
Lowell Baron, CEO of Brookfield Real Estate, emphasized LXP’s high-quality portfolio and the strategic alignment of the acquisition with Brookfield’s investment strategy focused on durable cash flows and value creation through active management.
