NEW YORK CITY AND EL SEGUNDO, CALIF. — Brookfield Asset Management (NYSE: BAM) has entered into a definitive agreement in which one of the firm’s private real estate funds will acquire the outstanding shares of Peakstone Realty Trust (NYSE: PKST), an industrial REIT that has a strategic focus on the industrial outdoor storage (IOS) sector. The El Segundo-based company, which sold off its final office assets in December, currently owns 76 industrial properties, including 60 IOS assets.
At a proposed price of $21 per share, the all-cash transaction represents an implied enterprise value of approximately $1.2 billion. The price represents a 34 percent premium relative to Peakstone’s share price on Jan. 30, the last full trading day prior to the announcement.
“This transaction recognizes the value of our industrial portfolio and the progress we have made expanding our IOS platform,” says Michael Escalante, CEO of Peakstone.
At the conclusion of the acquisition, Peakstone will be a privately held company and will be delisted from the New York Stock Exchange. Founded in 2009 as Griffin Realty Trust, the company was rebranded as Griffin Capital Essential Asset REIT in January 2023 and then as Peakstone Realty Trust in 2021.
For Brookfield, the transaction allows the company to expand its industrial real estate platform.
“[Peakstone’s portfolio] will benefit from strong long-term fundamentals for the warehouse and IOS sectors,” says Lowell Baron, CEO of Brookfield’s Real Estate business.
The transaction has been unanimously approved by Peakstone’s board of trustees and is expected to close by the end of the second quarter, subject to customary closing conditions, including approval by Peakstone’s shareholders. The agreement includes a 30-day “go-shop” period whereby Peakstone can solicit and consider alternative acquisition proposals.
BofA Securities Inc. is serving as Peakstone’s exclusive financial advisor, and Latham & Watkins LLP is serving as the REIT’s legal advisor.
Citigroup Global Markets Inc. is acting as Brookfield’s financial advisor, and Gibson, Dunn & Crutcher LLP is serving as the firm’s legal advisor.
Brookfield is based in New York City and has more than $1 trillion of assets under management, including real estate, infrastructure, renewable power and private equity. The company’s stock price closed on Monday, Feb. 2 at $50.76 per share, down from $58.19 a year ago, a 12.8 percent decline.
— John Nelson