Warehouse REIT board minded to accept offer from private equity investor
The board of Warehouse REIT is minded to accept an offer from private equity investor Blackstone.
The 115p per share offer values the Chester-based industrial property business at £489m, but has been slightly reduced due to recent dividend payments.
In a statement to the stock market this morning (27 March 2025) the board said the offer represents a premium of 39.6% to the closing share price of 82.4p.
Warehouse REIT rejected an initial cash bid from Sixth Street Luxembourg Sarl and Blackstone Europe which valued it at £463 million. This new offer is Blackstone’s final bid, they said.
“Blackstone believes the final indicative proposal provides a highly deliverable and compelling alternative to shareholders, attributing a full valuation for the company and its future prospects. There can be no certainty that any offer for the company will be made,” Blackstone said on Tuesday.
“The financial terms of the final indicative proposal are final and will not be increased.”
Warehouse REIT values its portfolio at £810.2m across 69 estates and enjoys a rent roll of £44.6m. Earlier this week it refinanced its lending with a new £200 million term loan and a £100 million revolving credit facility.
In its last set of results it posted sales 8.1% ahead of March 2024 book value, bringing total disposals for the first nine months of the financial year to £74.4 million, 1.8% ahead of book value.
Earlier this year a positive quarter of leasing activity for the three months to 31 December 2024 saw the REIT complete 25 transactions, securing £3.5 million of contracted rent and is continuing to successfully capture portfolio reversion, with transactions agreed on average 32.2% ahead of previous contracted rent.
On selling £12.8 million of non-core asset sales last month, Warehouse REIT, said it showed the industrial property market is showing signs of resilience.
Last month it sold Swift Valley Industrial Estate in Rugby for £6.1 million.
