Brookfield Asset Management, a global alternative asset manager with over US$1 trillion in assets under management, has partnered with the Canada Pension Plan Investment Board (CPP Investments) to acquire LXP Industrial Trust. The transaction, an all-cash purchase, is valued at approximately US$5.2 billion, the companies announced on Monday.
LXP Industrial Trust is a real estate investment trust (REIT) specialising in high-quality warehouse and distribution facilities. The company owns one of the largest portfolios of warehouse and logistics assets in the United States, comprising 108 properties with a total area of approximately 53 million square feet across 12 Sun Belt and Midwest markets.
Thomas W. Eglin Jr., Chairman and CEO of LXP, stated that the transaction was the “culmination of the successful execution of the LXP team’s strategic plan to transform LXP into a pure-play industrial REIT”.
Strategic Alignment and Long-Term Outlook
For CPP Investments, this acquisition represents continued interest in the US industrial sector. Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments, commented that the industrial sector, particularly in the US, continues to offer attractive long-term investment opportunities. This is supported by structural demand drivers such as domestic manufacturing, evolving global supply chains, and population growth in key Sun Belt markets. She added that they look forward to partnering with Brookfield and combining their operational expertise with a well-positioned portfolio to generate sustainable investment returns.
Lowell Baron, CEO of Brookfield Real Estate, added that the acquisition aligns with the company's strategy to invest in high-quality real estate with sustainable cash flows and opportunities for value creation through active asset management.
Transaction Details and Further Activities
The merger is expected to close in the fourth quarter of 2026. Bank of America Securities and J.P. Morgan Securities acted as financial advisors for the deal. Under the terms of the agreement, LXP shareholders will receive US$61.20 per share, representing a 12 percent premium to the company's volume-weighted average share price for the last 30 days up to 17 July.
The announcement of the deal comes in a busy week for Brookfield. The company also announced the formation of a US$2.1 billion joint venture with Healthpeak Properties to invest in outpatient medical buildings in the US. Additionally, Commercial Observer reported last week that Brookfield is in exclusive talks to acquire a stake in the New York office portfolio Hudson Square Properties (13 properties) and could potentially replace Hines in the portfolio's ownership structure.
