Brookfield, CPP To Pay $5.2B To Take 108-Property Industrial Firm Private

Brookfield Asset Management and Canada Pension Plan Investment Board are teaming up for a $5.2B bet on the U.S. industrial market.

BAM, the New York-based investment management arm of Toronto-based Brookfield Corp., and CPPIB plan to buy LXP Industrial Trust in an all-cash deal that will take the South Florida-based REIT and its 108 properties off the public market.

man in warehouse looking up distribution center

The Canadian investment giants agreed to pay a 12.3% premium on LXP’s 30-day weighted average share price of $61.20 to buy out shareholders and acquire the 53M SF portfolio spread across the Sun Belt and Midwest. The deal is expected to close in the fourth quarter, pending shareholder approval.

“The industrial sector, particularly in the U.S., continues to offer attractive long-term investment opportunities, supported by structural demand drivers including domestic manufacturing, evolving global supply chains and population growth across key Sun Belt markets,” Sophie van Oosterom, CPP Investment Board’s head of real estate, said in a statement.

Industrial operators have bounced back from a relatively weak showing in 2025 with strong demand on both the leasing and sales fronts. Prologis, the world’s largest industrial landlord, signed a record 67M SF worth of leases in the second quarter and disclosed last week that it is exploring dozens of markets for speculative warehouse development.

The backlog of empty warehouses from a wave of pandemic-era construction is now finding tenants, driven by demand from third-party logistics companies and other distributors as well from vendors that serve new manufacturing facilities and the massive data center build-out happening across the country.

Capital has followed the bounce-back, with JLL Income Property Trust, the brokerage’s nonlisted REIT, swapping industrial for multifamily as its top allocation in June.

BKM Capital Partners and Kayne Anderson Real Estate acquired a $1.8B portfolio spanning 8.5M SF in June that the joint venture said was the largest deal in the light industrial space since 2022. In March, Ares Management agreed to pay $650M to acquire 36 warehouses spanning 7.3M SF from EQT Real Estate.

The latest Brookfield and CPP deal includes a 40-day window in which LXP can find a better deal and swap buyers after paying a termination fee. LXP will still report second-quarter results on July 29 but will skip the customary conference call, the REIT said as part of the acquisition announcement.

LXP reported $47.3M in funds from operations in the first quarter, up 2.6% from the prior year and a 2% increase to its same-store net operating income. It also repurchased 325,000 shares at an average price of $48.70.

Shares in LXP opened up by more than 3% Monday to roughly $60.75. The stock has gained 23% year-to-date.

LXP valued its portfolio at $4.7B in a June investor presentation, with 93% of the properties being new, bulk distribution real estate. Its portfolio was 96.6% leased, with the average tenant paying $5.28 per SF.

Its largest tenant is Amazon, which takes up 6.7% of its portfolio, and its top 10 tenants account for roughly a third of its occupancy base.

The REIT’s assets are spread across Arizona, Texas, Indiana, Ohio, Tennessee, South Carolina, Georgia and Florida.

Brookfield also announced a plan Monday to buy a 49% stake in Healthpeak Properties and its 86 healthcare assets in 11 states for $2.1B. The REIT, which has seen shares rise nearly 40% this year, spun off its senior housing assets into a standalone REIT in March to focus on medical and lab space.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Big Banks Take Bigger CRE Losses As They Clear Out Problem Loans

Distressed Sales Jump 26%, Led By Multifamily Deals

Ares, Invesco Nontraded REITs Raise Nearly 6 Times Capital Redeemed In Q3

Over 60% Of Builders Say Immigration Crackdown Is Making It Harder To Build

Dublin Logistics Set To Beat 2025 As Takeup Hits Highest Level In Almost 3 Years

Hedge Fund Two Sigma Cuts Staff And Backs Off Real Estate Business

Senate Bill Offers Data Centers A Faster Path To Power, But At A Price

Site Centers To Stop Trading As It Winds Up Operations

Newmark: $179B In Low-Rate Real Estate Loans Face Refinancing Risk

DFW Industrial Thrives As Tenants Seek Quality, Flexibility And Power

Brookfield Veteran Departs To Become Pretium's Global Real Estate Lead

Lenders Accuse Nord Group Entities Of Pocketing Rents, Faking Insurance As Multifamily Empire Crumbles