LXP Industrial Trust to Be Acquired by Brookfield, CPP Investments for $5.2 Billion

LXP Industrial Trust (NYSE: LXP) has agreed to be acquired by Brookfield Asset Management and Canada Pension Plan Investment Board (CPP Investments) in a $5.2 billion all-cash deal. The take-private transaction underscores strong investor appetite for industrial real estate assets amid the growth of e-commerce.

Transaction Details

Under the terms of the agreement announced Monday, LXP shareholders will receive $61.20 in cash for each share they hold. According to Reuters calculations, this price represents a premium of approximately 4.6% to the stock's last closing price.

Following the completion of the deal, LXP's shares will no longer be traded on the New York Stock Exchange. The company, which had a market capitalization of about $3.5 billion prior to the announcement, stated it still plans to report its second-quarter results as scheduled on July 29.

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Market Impact and Context

Shares of LXP rose 4% in premarket trading following the news. The acquisition highlights the sustained demand for warehouse and logistics properties, a sector benefiting from the expansion of e-commerce and corporate efforts to modernize supply chains.

This transaction follows a similar move by Brookfield earlier this year, when it agreed to purchase Peakstone Realty Trust in a roughly $1.2 billion all-cash deal, signaling a continued focus on the real estate sector. BofA Securities and J.P. Morgan served as financial advisers to LXP on the transaction.