Key Takeaways
- • Brookfield Asset Management and CPP Investments completed their approximately $5.2 billion all-cash acquisition of LXP Industrial Trust, with the figure including net debt and preferred equity.
- • LXP shareholders received $61.20 per share in cash, and LXP's shares have ceased trading on the New York Stock Exchange as the company is now privately held.
- • The acquired portfolio comprises 107 industrial properties totaling roughly 52 million square feet across Sunbelt and Midwest markets, primarily modern logistics and distribution facilities.
- • The assets will be integrated into Brookfield's global logistics platform of more than 255 million square feet across over 850 properties in 20 countries, substantially expanding its U.S. logistics real estate presence.
- • BofA Securities advised LXP as lead financial advisor, with J.P. Morgan as co-advisor; Citigroup and Morgan Stanley advised Brookfield and CPP Investments as leads.
Summary
Brookfield Asset Management and Canada Pension Plan Investment Board (CPP Investments) have completed their approximately $5.2 billion acquisition of LXP Industrial Trust in an all-cash transaction. The valuation includes net debt and preferred equity, and LXP shareholders received $61.20 per share in cash. Following completion, LXP's shares ceased trading on the New York Stock Exchange, and the company is now privately held.
The acquisition adds a portfolio of 107 industrial properties totaling approximately 52 million square feet across markets in the Sunbelt and Midwest. The assets are primarily modern logistics and distribution facilities benefiting from established tenants, strong occupancy and long-duration leases. Brookfield and CPP Investments believe the portfolio can generate long-term returns through contractual rental income, future leasing activity and demand for industrial distribution infrastructure.
The properties will be integrated into Brookfield's global logistics platform, which comprises more than 255 million square feet across over 850 properties in 20 countries. The transaction substantially expands Brookfield's logistics real estate presence in the United States. Brookfield manages more than $1 trillion in assets across infrastructure, energy, private equity, real estate and credit. For CPP Investments, the deal expands its portfolio of U.S. industrial real estate and supports its long-term investment strategy.
Lowell Baron, CEO of Brookfield Real Estate, said the acquisition reflects conviction in the long-term fundamentals of the U.S. industrial sector, citing strong demand for large-scale distribution facilities with limited supply. Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments, said LXP adds a high-quality, scaled portfolio to the pension fund's U.S. real estate holdings and is well positioned to capture further value as logistics markets evolve.
BofA Securities served as lead financial advisor to LXP, with J.P. Morgan as co-financial advisor. Citigroup and Morgan Stanley served as lead financial advisors to Brookfield and CPP Investments, with additional advisory support from Goldman Sachs, Santander, Scotiabank and other institutions. The completed transaction represents a major investment in U.S. logistics infrastructure and reflects continued institutional interest in high-quality industrial real estate.
The acquisition adds a portfolio of 107 industrial properties totaling approximately 52 million square feet across markets in the Sunbelt and Midwest. The assets are primarily modern logistics and distribution facilities benefiting from established tenants, strong occupancy and long-duration leases. Brookfield and CPP Investments believe the portfolio can generate long-term returns through contractual rental income, future leasing activity and demand for industrial distribution infrastructure.
The properties will be integrated into Brookfield's global logistics platform, which comprises more than 255 million square feet across over 850 properties in 20 countries. The transaction substantially expands Brookfield's logistics real estate presence in the United States. Brookfield manages more than $1 trillion in assets across infrastructure, energy, private equity, real estate and credit. For CPP Investments, the deal expands its portfolio of U.S. industrial real estate and supports its long-term investment strategy.
Lowell Baron, CEO of Brookfield Real Estate, said the acquisition reflects conviction in the long-term fundamentals of the U.S. industrial sector, citing strong demand for large-scale distribution facilities with limited supply. Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments, said LXP adds a high-quality, scaled portfolio to the pension fund's U.S. real estate holdings and is well positioned to capture further value as logistics markets evolve.
BofA Securities served as lead financial advisor to LXP, with J.P. Morgan as co-financial advisor. Citigroup and Morgan Stanley served as lead financial advisors to Brookfield and CPP Investments, with additional advisory support from Goldman Sachs, Santander, Scotiabank and other institutions. The completed transaction represents a major investment in U.S. logistics infrastructure and reflects continued institutional interest in high-quality industrial real estate.
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