Blackstone Set to Take Ownership of UK Warehouse Reit after Tritax Big Box Withdraws

Tritax Big Box, the UK warehouse landlord, has decided not to improve its £465 million offer for Warehouse Reit, clearing the path for Blackstone to take ownership of the company. The US private equity giant was leading the takeover battle with an all-cash bid of £489 million, backed by the Warehouse Reit board. The decision by Tritax Big Box is seen as the right move by analysts, who believe an all-out bidding war would not be in the best interests of shareholders.

Key Takeaways:

• Tritax Big Box has decided not to improve its £465 million offer for Warehouse Reit, effectively handing victory to Blackstone.
• Blackstone's all-cash bid of £489 million has the backing of the Warehouse Reit board.
• Warehouse Reit owns dozens of industrial estates across the UK, generating £45 million in rent annually from tenants such as the NHS, John Lewis, and DHL.
• Tritax Big Box's decision not to raise its offer reflects a fall in its share price in recent weeks, reducing the value of Warehouse Reit.
• Blackstone aims to roll Warehouse Reit into its existing warehouse business, Indurent, creating a massive warehouse empire.
• The deal is expected to close next month, with Warehouse Reit shareholders set to vote on the proposal.

Statistics:

• Warehouse Reit owns 1,400 plots of land and 13.5 million square feet of warehouse space.
• The company collected £45 million in rent last year, with occupancy rates at 98%.
• Warehouse Reit's portfolio was last valued at £810 million.
• Blackstone's all-cash bid of £489 million represents a 20% premium on Warehouse Reit's current valuation.
• Tritax Big Box's decision not to raise its offer reflects a £20 million reduction in Warehouse Reit's valuation.

Sources:

• Real estate industry analyst Andrew Saunders at Shore Capital
• Tritax Big Box statement on its decision not to raise its offer
• Warehouse Reit board recommendation of Blackstone's £489 million bid