Tritax Big Box has agreed a £485.2 million deal to buy a London-listed rival, fending off a competing bid by private equity giant Blackstone.
Warehouse REIT (Real Estate Investment Trust) said on Wednesday its bosses have recommended the proposed takeover by Tritax.
The deal will value Warehouse – which owns a raft of distribution sites run by companies including Amazon – at 114.2p per share.
It comes weeks after Warehouse originally agreed to be bought by US private equity firm Blackstone for £470 million.
Warehouse shares jumped in early trading after it confirmed the new takeover plan.
Bosses at Tritax said the deal “has a compelling strategic and financial rationale” for shareholders in both companies.
The firms said the move would deliver £5.5 million a year in immediate cost synergies due to larger economies of scale.
Aubrey Adams, the chairman of Tritax Big Box, said: “This transaction delivers value accretion to both Tritax Big Box and Warehouse shareholders driven by immediate cost synergies, rental reversion and strong structural drivers supporting valuation and income growth in urban and big box logistics.
“The board is delighted to be able to offer Warehouse shareholders the opportunity to be invested in the upside potential of the UK’s leading listed logistics real estate portfolio, whilst also providing the certainty of a partial cash offer.”
Neil Kirton, the chairman of Warehouse, said: “The board is pleased to be recommending the acquisition, which is not only at a higher level to the previous offer for the company, but which also provides Warehouse shareholders with the opportunity to retain both the Warehouse Q4 and Q1 dividends and remain invested in this attractive asset class.”
