Brookfield Asset Management and Canada Pension Plan Investment Board have agreed to acquire LXP Industrial Trust in an all-cash take-private transaction valued at approximately $5.2 billion, including net debt and preferred equity. The agreement would remove LXP from the public markets and transition the company to private ownership backed by Brookfield and CPP Investments.
West Palm Beach-based LXP controls one of the larger industrial portfolios in the United States, focused on warehouse and logistics facilities. Its holdings total about 53 million square feet across 108 properties concentrated in the Sunbelt and Midwest regions, reflecting a footprint in markets that have attracted sustained logistics and distribution demand.
LXP traces its roots to Lexington Realty Trust and began repositioning its business in 2018. Since then, the company has executed a strategy to become a pure-play industrial REIT. According to Thomas W. Eglin, Jr., LXP’s chairman and CEO, the pending acquisition represents the culmination of that multi-year plan, which aimed to sharpen the company’s focus on industrial, upgrade the quality of the portfolio, and advance its development initiatives.
Brookfield Real Estate CEO Lowell Baron said LXP has assembled a high-quality, modern logistics portfolio in attractive markets. He noted that the acquisition is consistent with Brookfield’s approach of investing in real estate assets that generate durable cash flows and offer opportunities to enhance value through active asset management. The transaction would add a sizable industrial platform to Brookfield’s real estate holdings, alongside CPP Investments as a long-term institutional capital partner.
The merger agreement provides for a 40-day go-shop period that allows LXP to solicit and evaluate alternative acquisition proposals. This window expires at 11:59 p.m. New York City time on August 28. Under the terms of the agreement, LXP may terminate the transaction in order to accept a superior proposal, subject to the conditions in the merger documents and the payment of a termination fee to the current buyers.
Advisory teams have been assembled on both sides of the transaction. BofA Securities, Inc. is serving as lead financial advisor to LXP, with J.P. Morgan Securities LLC acting as co-financial advisor. Hogan Lovells and Cadwalader US LLP are providing legal counsel to LXP. On the buy-side, Citigroup Global Markets Inc. and Morgan Stanley are acting as financial advisors to Brookfield and CPP Investments. Gibson, Dunn & Crutcher LLP and Thompson Hine LLP are serving as legal advisors to Brookfield and CPP Investments, and DLA Piper LLP is advising CPP Investments on certain aspects of the deal. Dechert LLP is providing legal counsel to Citigroup Global Markets and Morgan Stanley in connection with the transaction.
