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Blackstone is poised to win a battle for Warehouse Reit, after the listed UK landlord said it would switch its shareholder recommendation to an offer from the US investment group over a rival bid from Tritax Big Box Reit.
Warehouse Reit said on Friday it was changing its endorsement after Blackstone confirmed it would allow shareholders to receive a dividend from Warehouse, which will be paid this month.
The latest Blackstone offer amounts to 115p cash a share and values Warehouse at about £489mn. Tritax had offered a cash and stock deal worth around £485.2mn.
The new offer “provides Warehouse Reit shareholders with a certain all-cash offer, at a premium to the [Tritax] offer”, said Neil Kirton, chair of Warehouse Reit.
Blackstone, which has been pursuing the UK group for months, is seeking to take advantage of what investors believe may be the bottom of the commercial property market. Real estate values have plunged since 2022, as higher interest rates hit asset values and held back investment.
Blackstone, the world’s largest commercial property investor, had originally offered £470mn in February.
Listed landlords have been trading at substantial discounts to the value of their assets, with smaller groups under increasing pressure to sell up or consolidate.
Private capital has been hunting logistics targets across Europe in recent years, drawn by the continued boom in ecommerce and prospects for growth in the sector.
Blackstone last year struck a €1bn deal to buy an 80 per cent stake in a European logistics portfolio from Johannesburg-listed landlord Burstone, while US investors Lone Star and Starwood have also acquired big logistics portfolios.
