Brookfield, CPP Investments to Buy LXP in $5.2 Billion Cash Deal
The buyers targeted a nationwide logistics portfolio with durable leases and opportunities for active asset management.
Brookfield Asset Management (BAM) and Canada Pension Plan Investment Board agreed to acquire LXP Industrial Trust (LXP) in an all-cash transaction valued at about $5.2 billion, including net debt and preferred equity. The agreement would place one of the largest portfolios of modern U.S. warehouse and logistics properties under the ownership of the two investment managers.
LXP shareholders would receive $61.20 a share in cash. The consideration represented a 12.3% premium to LXP’s 30-day volume-weighted average price and a 19.8% premium to its 90-day VWAP, in each case for the period ended July 17. LXP’s board of trustees unanimously approved the transaction, which is expected to close in the fourth quarter of 2026, subject to shareholder approval and other customary closing conditions. The deal isn’t subject to a financing condition.
Brookfield framed the acquisition as an opportunity to apply its real-estate operating capabilities to a portfolio supported by long leases and demand for logistics space. “The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management. We’re excited to partner with CPP Investments and build on LXP’s strong foundation,” Brookfield Real Estate Chief Executive Lowell Baron said.
LXP owned about 53 million square feet across 108 properties in industrial markets spanning the Sunbelt and Midwest. The real-estate investment trust focused on Class A warehouse and distribution properties in 12 target markets, building its portfolio through acquisitions, developments, build-to-suit projects and sale-leaseback transactions. Brookfield and CPP Investments pointed to the portfolio’s modern facilities, strong occupancy and long-duration leases as sources of durable cash flow. CPP Investments also cited domestic manufacturing, shifting global supply chains and population growth in Sunbelt markets as long-term drivers of demand for U.S. industrial real estate.
The merger agreement gave LXP a 40-day go-shop period ending at 11:59 p.m. New York City time on Aug. 28, during which the company may solicit and consider competing proposals. LXP may terminate the agreement to accept a superior proposal under specified conditions, including payment of a termination fee and compliance with the buyers’ notice and negotiation rights.
LXP agreed to suspend common-share dividends until the transaction closes or the merger agreement is terminated. Completion would take LXP off the New York Stock Exchange and make it a privately held company, leaving shareholder approval and the customary closing conditions as the remaining gates to Brookfield and CPP Investments taking control of the logistics portfolio.