NEW YORK CITY AND TORONTO — A partnership between Brookfield Asset Management (NYSE: BAM) and the Canadian Pension Plan (CPP) Investment Board has agreed to acquire LXP Industrial Trust (NYSE: LXP) in an all-cash transaction valued at $5.2 billion. The deal is expected to close in the fourth quarter.
The price tag includes LXP’s net debt and preferred equity. In addition, the terms of the deal call for LXP shareholders to receive $61.20 per share in cash, which represents a premium of 12.3 percent over the REIT’s 30-day volume weighted average share price (VWAP) and a 19.8 percent premium over the company’s 90-day VWAP. Both figures are based on time frames that ended Friday, July 17.
LXP has agreed to suspend payment of common share dividends until the earlier of the closing of the transaction or the termination of the definitive agreement. The agreement also includes a 40-day “go-shop” period that expires on August 28 at 11:59 p.m. EST, during which time LXP and its advisors may actively solicit and consider alternative acquisition proposals and engage in discussions with third parties.
“LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets,” said Lowell Baron, CEO of Brookfield Real Estate. “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.”
“This transaction is the culmination of the LXP team’s successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio and implement our development program,” adds Thomas Eglin, chairman and CEO of LXP Industrial. “The LXP board unanimously determined that this transaction with Brookfield and CPP Investments fully maximizes value for our shareholders.”
Headquartered in New York City, Brookfield has more than $1 trillion of assets under management across infrastructure, energy, private equity, real estate and credit. The company’s stock price opened at $48.33 per share on July 20, the day the merger was announced, down about 20 percent from $60.99 per share a year ago.
Also based in New York City, LXP owns 108 industrial properties totaling approximately 53 million square feet across Midwest and Sun Belt markets. The company’s stock price opened at $60.77 per share on July 20, up nearly 33 percent from $41.40 a year ago.
CPP Investments is based in Toronto and manages the Canada Pension Plan Fund on behalf of 22 million contributors and beneficiaries. The fund totaled 793.3 billion Canadian dollars, or approximately $570 billion, as of March 31, 2026.
- Taylor Williams