Blackstone has confirmed a recommended cash offer for Industrials REIT.
The take-private deal would see Blackstone acquire the company at a price that values it £700m, inclusive of debt. Industrials REIT shareholders would receive 168p per ordinary share in cash, under the terms of the final offer.
The offer is a premium of 42.4% to the closing share price on 31 March and what the companies call a “material premium” to the Industrials REIT directors’ expectations of the rolled-forward 31 March 2023 unaudited EPRA NTA per share.
Blackstone has so far received undertakings and letters of intent to vote for the deal from shareholders holding some 28.7% of the target, including its own directors.
Industrials chair Richard Grant said: “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. 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.
“The board has therefore been able to evaluate today’s recommendation from a position of strength. Mindful of the growth opportunity in the industrial real estate sector, initial approaches were rejected. However, following careful consideration and reflecting on the uncertain macro-economic backdrop, we believe this offer is in the best interests of Industrials shareholders providing them with cash certainty at an attractive premium to the pre-offer share price and significantly accelerating the value that could be realised by Industrials if it were to remain listed.”
James Seppala, head of Blackstone Real Estate Europe, said: “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.”
Numis Securities and Eastdil Secured are advising Industrials REIT, while Rothschild is advising Blackstone.
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