Blackstone has lowered its proposed take-private offer for Warehouse REIT, citing concerns over the valuation of one of the target’s development projects.
The private equity group had proposed an offer of 115 per share, or £489m, which Warehouse REIT’s board said it was likely to recommend.
But in a stock exchange notice, Warehouse REIT said Blackstone had now identified “several matters arising from its due diligence, the most significant of which related to contrasting views on the valuation of the company’s development asset at Radway Green”.
As a result, Blackstone has made a revised proposal at 110.6 pence per share, or £470m. An independent committee formed by Warehouse REIT said it will likely recommend that offer.
Blackstone now has until the end of 6 June to make a firm offer.
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