Blackstone is set to take over UK-listed Warehouse Reit in a £489m all-cash deal, after the property group’s board reversed its recommendation in favour of the US private equity giant’s improved offer.

Warehouse Reit announced the decision on Friday, highlighting that Blackstone’s latest 115p-per-share bid represents a premium over the rival £485.2m cash-and-stock proposal from Tritax Big Box Reit. The updated offer also includes the option for shareholders to collect a dividend this month.

The 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.

The deal signals Blackstone’s continued push into UK commercial real estate, as it moves to capitalise on steep valuation drops caused by rising interest rates. The firm, which had initially offered £470m in February, is targeting opportunities across a sector where listed landlords are increasingly trading at discounts to their underlying asset value.

As the world’s largest commercial property investor, Blackstone’s decisive bid underscores its ability to execute amid ongoing market volatility and further consolidates its foothold in the European logistics real estate sector.

Source: Financial Times 

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