The Warehouse REIT board has told Blackstone it would be "minded to recommend" this week's £489 million promised takeover offer, a bid the US private equity group had promised would be its fifth and final one.
In a stock market filing, the UK multilet industrial real estate investment trust said that should a firm offer be made on the financial terms set out at 115 pence per share, it would be minded to recommend the offer. The board has decided to engage in discussions with Blackstone and allow the group to complete a "limited period of confirmatory due diligence".
It did say the offer price would be adjusted for the interim dividend of 1.6 pence, declared by the company on 19 February 2025, and as such the offer will be reduced to 113.4 pence per ordinary Warehouse REIT share following the dividend payment date on 11 April.
The offer is at a premium of 40.2% to the 1-month volume weighted average share price of 82 pence on 28 February .
In the previous stock market announcement published by Warehouse REIT, Blackstone 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".
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.