Industrial REIT Take-Private Shows Investor Confidence in Sunbelt Warehouses
Brookfield Asset Management and Canada Pension Plan Investment Board will acquire LXP Industrial Trust for approximately $5.2 billion, including net debt and preferred equity. LXP shareholders will receive $61.20 per share, a 12 percent premium to the company’s 30-day volume-weighted average price through July 17. The transaction is expected to close in the fourth quarter, after which LXP will delist from the New York Stock Exchange.
LXP owns roughly 53 million square feet of industrial real estate across 108 properties concentrated in Sunbelt and Midwest markets. CPPIB’s head of real estate, Sophie van Oosterom, cited structural demand drivers including domestic manufacturing, evolving global supply chains, and population growth across key Sunbelt markets. The buyers are betting on continued strength in U.S. industrial fundamentals.
The deal adds to a growing list of industrial REIT privatizations as institutional investors seek direct exposure to logistics real estate. Industrial assets have attracted long-term capital despite broader uncertainty in commercial real estate, with warehouse fundamentals supported by e-commerce and supply chain reconfiguration. Brookfield and CPPIB gain a Sunbelt-focused portfolio at a moment when the region continues to draw both population and business investment.
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