Brookfield and CPP Investments strike $5.2bn deal to take LXP Industrial Trust private

October 2026 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

October 2026 Issue

LXP Industrial Trust has agreed to be acquired by Brookfield Asset Management and Canada Pension Plan Investment Board (CPP Investments) in a $5.2bn all-cash transaction that will take the industrial real estate investment trust private.

The deal, announced on 20 July 2026, includes net debt and preferred equity and values LXP at approximately $5.2bn. Under the terms of the agreement, shareholders will receive $61.20 per share in cash. The offer represents a premium of more than 12 percent to the company’s 30-day volume-weighted average share price and a 19.8 percent premium to its 90-day volume-weighted average share price, in each case for the period ended 17 July 2026.

The transaction is expected to close during the fourth quarter of 2026, subject to shareholder approval, regulatory requirements and other customary closing conditions. The agreement has been unanimously approved by LXP’s board of trustees. Following completion, the company will become privately held and its shares will be delisted from the New York Stock Exchange.

As part of the merger agreement, LXP has secured a 40-day go-shop period, giving the company an opportunity to solicit and evaluate alternative acquisition proposals before the transaction becomes final. The company has also agreed to suspend payments of common-share dividends until either the transaction closes or the merger agreement is terminated.

LXP owns one of the largest portfolios of modern warehouse and logistics facilities in the US, comprising approximately 53 million square feet across 108 properties located in key industrial markets across the Sunbelt and Midwest. Its portfolio benefits from high occupancy levels, long-duration leases and exposure to markets supported by population growth, manufacturing activity and logistics investment.

“This transaction is the culmination of the LXP team’s successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio, and implement our development program,” said Thomas W. Eglin, Jr., chairman and chief executive of LXP. “The LXP Board unanimously determined that this transaction with Brookfield and CPP Investments fully maximizes value for our shareholders.”

“LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets,” said Lowell Baron, chief executive of Brookfield Real Estate. “The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management.”

“The industrial sector, particularly in the US, 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 Sunbelt markets,” said Sophie van Oosterom, managing director and head of real estate at CPP Investments. “We look forward to partnering with Brookfield and combining their operating expertise with a well-positioned portfolio to generate sustainable investment returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”

The acquisition is the latest example of institutional investors increasing their exposure to industrial real estate, a sector supported by long-term trends including e-commerce expansion, supply-chain modernisation and demand for strategically located logistics facilities. Investors continue to view high-quality warehouse assets as attractive sources of stable income and long-term capital appreciation.

LXP is a publicly traded REIT focused on class A warehouse and distribution properties in 12 target markets across the Sunbelt and Midwest.

Brookfield is a global alternative asset manager with more than $1 trillion in assets under management across infrastructure, renewable power, private equity, real estate and credit strategies.

CPP Investments manages the Canada Pension Plan Fund on behalf of more than 22 million contributors and beneficiaries and operates independently of government.

Industrial real estate remains a favoured asset class, with Brookfield and CPP Investments betting on continued logistics demand and growth.

Richard Summerfield