Think private equity’s “logistics long” has run its course? Not yet! On Monday, giant-among-giants Blackstone announced that its Real Estate Income Trust (BREIT) division, which manages $208 billion in client assets just in real estate, will acquire Canadian listed WPT Industrial Real Estate Investment Trust (WPT). Unitholders will receive $22 per unit in an all-cash transaction valuing the North American warehouse owner-operator at $3.1 billion, including debt.
The $22-per-unit selling price represents a 17.1 percent premium to WPT’s closing price on the Toronto Stock Exchange on August 6, a 19.5 percent premium to its 30-day VWAP, and a 32.1 percent to the current research consensus NAV per unit estimate of $16.66. The transaction, which was unanimously recommended to unitholders by a committee of independent members of WPT’s Board of Trustees, is expected to close in the fourth quarter of 2021.
High conviction
While WPT is Canadian listed, the company acquires, develops, manages and owns distribution and logistics properties in the United States. Its operating subsidiary, WPT Industrial, indirectly owns or manages a portfolio of 109 properties spanning 37.5 million square feet across 19 U.S. states.
“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.
“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,” said Louie DiNunzio, Chair of WPT’s Special Committee, which evaluated (and ultimately recommended) the offer.
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.”
