Blackstone Real Estate Income Trust (BREIT) has entered into an agreement to acquire WPT Industrial Real Estate Investment Trust at a rate of USD $22 (CAD $27.50) per unit, representing a 19.5 per cent premium on WPT REIT’s most recent 30-day average unit price on the TSX. The proposed transaction, which is subject to unitholder approval, has a total value of USD $3.1 billion (CAD $3.86 billion) and is expected to close in the fourth quarter of 2021.

WPT REIT’s board of trustees unanimously endorsed the deal, underscoring that unitholders would be in line for a more than 32 per cent premium on the current research consensus of the net asset value per unit, pegged at USD $16.66 (CAD $20.83) per unit. If approved, it would add about 37.5 million square feet of U.S.-based distribution and logistics facilities to BREIT’s holdings.

The real estate investment platform, which is externally managed by a subsidiary of Blackstone, has approximately USD $208 billion in investment capital under management and is focused primarily on income-generating properties in select property sectors in the United States.

“Logistics remains one of our highest conviction themes as the sector continues to benefit from strong tailwinds driven by e-commerce,” notes David Levine, senior managing director at Blackstone. “We look forward to expanding our logistics presence across key U.S. markets with the acquisition of this high-quality portfolio that WPT has built.”

Established as an open-ended REIT in Ontario and traded on the TSX, WPT’s portfolio encompasses 109 properties scattered through 19 U.S. states.

“We are very proud to enter into a transaction that delivers unitholders a compelling premium to net asset value per unit and our all-time high unit price,” submits Scott Frederiksen, WPT REIT’s chief executive officer. “Blackstone’s interest in acquiring and investing in the WPT platform is a testament to the quality of our portfolio and capabilities of our team.”