4th Jun 2025 15:21
(Alliance News) - Warehouse REIT PLC on Wednesday said it has agreed the terms of an acquisition by Blackstone Inc that values it at GBP470 million.
Under the terms of the acquisition, Wapping Bidco Ltd, a newly-formed company indirectly owned by investment funds advised by affiliates of Blackstone, will pay 109.00 pence in cash for each share.
Shareholders will receive a total of 110.60p per share, including the third interim dividend of 1.6p per share.
Warehouse REIT shares traded 0.8% higher at 107.00p in London on Wednesday afternoon. It has a market capitalisation of GBP453.1 million.
Warehouse REIT said the offer represents a premium of 34% to the closing price on the last business day before the start of the offer period.
The acquisition will be put to Warehouse shareholders at a court and general meeting.
Warehouse Chair Neil Kirton said: "Warehouse has, since its IPO in 2017, delivered strong operational performance that demonstrates the quality of our portfolio and our locations, and the resilience of the multi-let industrial market...Despite this success, the company's growth has been constrained by the weak macroeconomic backdrop, high interest rates, and an inability to raise new equity.
"The Warehouse independent directors therefore, following careful consideration and reflecting on the uncertain macroeconomic backdrop, believe that the cash offer from Blackstone provides shareholders the opportunity to receive cash at an attractive premium of 34.2% to the undisturbed price. As a result, the Warehouse independent directors have concluded that the acquisition is in the best interests of Warehouse shareholders and Warehouse as a whole."
In March, Blackstone made a fifth proposal of 113.40p per Warehouse share, representing a total offer value of 115.00p per share or GBP489 million.
Warehouse said it would be minded to accept the offer from the suitor. Blackstone reserved the right to make an offer on less favourable terms.
In May, Blackstone wrote to Warehouse raising matters arising from its due diligence, most significantly relating to contrasting views on the valuation of Warehouse's development asset at Radway Green.
As a result, Blackstone revised its final indicative proposal to 109.00p.
Earlier in March, Warehouse rejected a cash bid from a consortium comprising Sixth Street Luxembourg Sarl and Blackstone Europe LLP that valued it at GBP463 million.
Warehouse REIT on Wednesday also said it has exchanged contracts for the acquisition of Rycote Lane, a multi-let industrial estate near Oxford, England for GBP34.8 million.
The site is made up of 14 units, ranging from 3,000 square foot to over 50,000 square foot, and is 98% occupied.
Warehouse REIT said Rycote Lane generates contracted rent of GBP2.1 million, equating to a net initial yield of 5.6%.
The Rycote Lane acquisition is expected to complete at the end of September.
By Michael Hennessey, Alliance News reporter
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