Blackstone to Buy WPT Industrial for $3.1B

Blackstone is digging deeper into the industrial asset class with a newly-announced agreement that its REIT will acquire WPT Industrial REIT of Toronto for $3.1 billion. 

WPT acquires, develops, manages and owns distribution and logistics properties located in the US. Its portfolio includes 109 properties across 19 US states.

“Logistics remains one of our highest conviction themes as the sector continues to benefit from strong tailwinds driven by e-commerce,” said David Levine, senior managing director at Blackstone in prepared remarks. “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.”

The transaction price of US$22.00 per unit represents a 17.1% premium to the closing price of the units on the Toronto stock exchange on August 6, 2021, and a 19.5% premium to WPT’s 30-day volume-weighted average unit price on the Toronto stock exchange for the period ending August 6, 2021 and a 32.1% premium to the current research consensus Net Asset Value per Unit estimate for WPT of US$16.66 per Unit.

Morgan Stanley & Co. LLC and Desjardins Capital Markets are acting as financial advisors to WPT and Blair Franklin Capital Partners Inc. has also provided the Special Committee with a fairness opinion in respect of the Transaction.

Blake, Cassels & Graydon LLP and Vinson & Elkins LLP are acting as legal counsel to WPT in connection with the Transaction and Wildeboer Dellece is acting as independent legal counsel to the Special Committee.

Eastdil Secured is acting as financial advisor to BREIT and Simpson Thacher & Bartlett LLP and Goodmans LLP are acting as legal counsel to BREIT.