Asset management firm Brookfield Corp and the Canada Pension Plan Investment Board (CPP Investments) announced on Monday that they have reached an agreement to acquire industrial real estate trust LXP Industrial Trust for approximately $5.2 billion in an all-cash transaction. The deal will add a portfolio of modern warehouse and logistics facilities to the buyers' assets.

Under the terms of the agreement, Brookfield and CPP Investments will acquire all outstanding common shares of LXP Industrial Trust for about $17.50 per share, representing an approximate 18% premium to the company's closing price last Friday. The board of directors of LXP Industrial Trust has unanimously approved the transaction and recommends that shareholders vote in favor of it.

LXP Industrial Trust is a real estate investment trust (REIT) focused on single-tenant industrial properties. Its portfolio includes warehouse, logistics, and light manufacturing facilities, totaling approximately 60 million square feet, primarily located in key industrial corridors in the Eastern and Midwestern United States. As of the first quarter, the company's total assets were valued at around $6.5 billion.

The head of Brookfield's real estate group stated that the high-quality logistics assets of LXP Industrial Trust align strongly with Brookfield's global investment strategy in the industrial real estate sector. He noted that trends in e-commerce and supply chain restructuring continue to drive demand for modern warehouse facilities, and this acquisition will significantly expand Brookfield's footprint in the U.S. industrial real estate market.

A managing director of CPP Investments' real estate department said this investment fits the fund's long-term strategy of allocating capital to high-quality infrastructure and real estate assets. The portfolio of LXP Industrial Trust is situated in regions with strong logistics demand, offering good potential for rental growth and tenant retention.

The transaction remains subject to approval by LXP Industrial Trust shareholders and regulatory review. The companies anticipate the deal will be completed in the fourth quarter. Following the completion of the transaction, the stock of LXP Industrial Trust will be delisted from the New York Stock Exchange.