Blackstone Europe and Sixth Street Partners have had a fourth cash bid to take private UK multilet industrial investor Warehouse REIT rejected.
In a stock market filing, the consortium confirmed that on 23 February it made a fourth all-cash proposal to the board of Warehouse REIT of 110.5 pence per share for the entire issued and to be issued share capital. The proposal, which follows three prior proposals, was rejected by the board of Warehouse REIT on 28 February.
The latest proposal, which is inclusive of the third interim dividend of 1.6 pence per Warehouse REIT share declared on 19 February 2025, values the group at approximately £470 million. That is a premium of 34.1% to the closing price of 82.4 pence on 28 February 2025.
The consortium said it believes the proposal provides a "highly deliverable and compelling alternative to shareholders, attributing a full valuation for the company and its future prospects". It added that it is considering its position and "there can be no certainty that any offer for the company will be made".
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.
US private equity giant Blackstone has been the most active investor in UK industrial businesses and assets in recent years, notably via the take-private of St Modwen's logistics business and Industrials REIT, which it has merged to create Indurent, and via its Mileway industrial platform.
Sixth Street, the global investment firm, is also a highly active investor in UK real estate. In November, it joined forces with Copley for a joint venture targeting UK industrial, saying it had reached agreements for £180 million of initial investment.
Andrew Saunders, equity analyst at Shore Capital, said: "The news of another hostile approach in the sector is not surprising to us coming just two weeks after a similar situation with Assura unfolded, although this one fails to fully reflect the full potential of the business in our minds and the unique attractions of the multilet industrial real estate market.
"After a couple of tough years, Warehouse REIT is seeing improved momentum in its investment case driven by strong rental growth, reduced debt, impending Radway disposal and a recently announced reduction in the ongoing management fee payable to its advisor, Tilstone."