Blackstone is considering a counter-offer for UK multilet industrial investor Warehouse REIT after its prior recommended takeover offer was superseded by a bid from specialist Tritax Big Box REIT.
The potential bidding war would pit private equity against a listed bidder in the real estate sector again, after PHP's recent battle to see off a rival KKR-Stonepeak takeover bid for the Assura care homes business.
On 25 June, Tritax Big Box REIT said it had reached agreement with the board of directors at Warehouse REIT on a recommended takeover that trumped a rival recommended offer from Blackstone.
That acquisition implied a total value of 114.2 pence for each Warehouse share and values Warehouse’s entire issued, and to be issued, ordinary share capital at approximately £485.2 million.
The bid represents a premium to the £470 million value of the rival Blackstone offer, recommended on 4 June, of 109 pence of approximately 5.2 pence or 4.8%.
Today Blackstone said the "no increase statement regarding its final offer price is no longer in effect and has been set aside following the announcement of a firm intention to make an offer for Warehouse" by Tritax Big Box.
It added that it is considering its options and urges Warehouse shareholders to take no action in response to the Tritax Big Box offer.
Warehouse REIT is focused on the multilet sector across the UK and advised by Tilstone Partners. Its portfolio is valued at £810.2 million across 69 estates with a rent roll of £44.6 million. For a recent interview with the group about its strategy click here.
A sticking point appears to be the value Blackstone attaches to Warehouse REIT's giant Radway Green development, which Tritax has said it will develop out.