Industrial real estate continues to attract long-term institutional capital as investors seek logistics assets supported by e-commerce, manufacturing reshoring and evolving supply-chain networks. The latest example is a $5.2 billion agreement that will see Brookfield Asset Management and CPP Investments take LXP Industrial Trust private.
Brookfield and CPP Investments have entered into a definitive merger agreement to acquire LXP Industrial Trust in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity. Under the agreement, LXP shareholders will receive $61.20 per share in cash.
The acquisition gives the buyers control of a portfolio comprising approximately 53 million square feet of warehouse and logistics space across 108 properties located primarily in high-growth Sun Belt and Midwest industrial markets. According to LXP, the company has transformed itself into a pure-play industrial real estate investment trust focused on Class A warehouse and distribution facilities over recent years.
The offer represents a premium of 12.3% to LXP’s 30-day volume weighted average share price and 19.8% to its 90-day VWAP through July 17, according to the companies. The transaction has been unanimously approved by LXP’s board of trustees and is expected to close during the fourth quarter of 2026, subject to shareholder approval and customary regulatory conditions. The agreement does not include a financing condition.
The merger agreement also includes a 40-day “go-shop” period, allowing LXP to solicit and evaluate alternative acquisition proposals until late August. During this period, the board may consider superior offers under the terms of the agreement.
Following completion of the acquisition, LXP will become a privately held company and its shares will cease trading on the New York Stock Exchange. The REIT has also agreed to suspend common share dividends until either the transaction closes or the agreement is terminated.
The transaction highlights continued institutional confidence in U.S. industrial real estate despite a more selective investment environment. Warehouses and distribution facilities remain among the strongest-performing commercial property sectors as occupiers continue investing in regional fulfilment networks and modern logistics infrastructure. Reuters noted that sustained demand for warehouse assets has been supported by e-commerce growth and ongoing supply-chain modernization initiatives.
For Brookfield, the acquisition further expands its global real estate portfolio with stabilized logistics assets in strategically important U.S. distribution markets. CPP Investments, one of the world’s largest pension investors, has also continued increasing exposure to industrial real estate as part of its long-term global property strategy. According to CPP Investments, its investment fund totalled approximately C$793.3 billion as of March 31, 2026, providing substantial capacity for large-scale infrastructure and real estate investments.
LXP said it will continue with plans to report its second-quarter 2026 financial results as scheduled, although it does not expect to host future earnings conference calls while the acquisition remains pending.