Vancouver-based Pure Industrial Real Estate Trust (PIRET), a diversified investment trust, has announced that it has entered into a definitive acquisition agreement with Blackstone.
The deal, valued at $3.8bn, will see PIRET acquired by Blackstone for $8.10 in an all cash transaction, inclusive of PIRET’s outstanding debt. This price represents a 21% premium on PIRET’s existing share value.
“We are excited to be acquiring PIRET, one of the premier Canadian industrial REITs, as a continuation of our global strategy to acquire high-quality logistics assets in key urban markets,” said Tyler Henritze, Head of North America Acquisitions for Blackstone Real Estate. “The management team has done an excellent job building the portfolio and we look forward to working together going forward.”
Since 2007, PIRET has generated a total return of more than 345%. However, the PIRET Board now believes that the transaction poses significant potential for the company’s shareholders.
“Blackstone is a highly reputable and strategic owner and one of the world’s most active investors in logistics real estate,” said Kevan Gorrie, President and CEO, PIRET. “We look forward to further building out our platform.”
Blackstone will be making the acquisition through its core real estate investment arm, Blackstone Property Partners.