Blackstone Real Estate Income Trust, Inc. (BREIT) announced it will acquire WPT Industrial Real Estate Investment Trust for $3.1 billion.
WPT acquires, develops, manages and owns distribution and logistics properties across the US. It indirectly owns or manages a portfolio of properties across 19 U.S. states consisting of approximately 37.5 million square feet of GLA and 109 properties.
“We are very proud to enter into a transaction that delivers unitholders a compelling premium to Net Asset Value per Unit and our all-time high Unit price. Blackstone’s interest in acquiring and investing in the WPT platform is a testament to the quality of our portfolio and capabilities of our team” said Scott Frederiksen, Chief Executive Officer of WPT.
The transaction price of $22 per unit represents a 17.1 percent premium to the closing price of the units on the TSX on August 6, 2021.
“Blackstone is one of the world’s most active investors in logistics real estate and we are very pleased to enter into a transaction with such a highly reputable counterparty that delivers immediate value for WPT unitholders,” added Louie DiNunzio, Chair of the WPT Special Committee.
David Levine, Senior Managing Director at Blackstone said: “Logistics remains one of our highest conviction themes as the sector continues to benefit from strong tailwinds driven by e-commerce. We look forward to expanding our logistics presence across key U.S. markets with the acquisition of this high-quality portfolio that WPT has built.”
Morgan Stanley & Co. LLC and Desjardins Capital Markets are acting as financial advisors to WPT and Blair Franklin Capital Partners Inc. has also provided the Special Committee with a fairness opinion in respect of the Transaction.
Blake, Cassels & Graydon LLP and Vinson & Elkins LLP are acting as legal counsel to WPT in connection with the Transaction and Wildeboer Dellece is acting as independent legal counsel to the Special Committee.
Eastdil Secured is acting as financial advisor to BREIT and Simpson Thacher & Bartlett LLP and Goodmans LLP are acting as legal counsel to BREIT.