A Blackstone Group (BX.N) affiliate is to buy Pure Industrial Real Estate Trust (AAR_u.TO) in an all-cash deal valued at about C$2.48 billion ($2 billion), the Canadian REIT said on Tuesday.
Blackstone’s offer of C$8.10 per Pure Industrial’s unit represents a premium of 20.5 percent to its closing price on Monday on the Toronto Stock Exchange.
Shares of Pure Industrial, which owns and operates industrial properties across North America, surged 21 percent to a record high of C$8.13 in early trading, and has hovered slightly above the offer price.
The acquisition offer was made by Blackstone Property Partners, the U.S. private equity firm’s real estate investment unit that targets office, industrial, multifamily and retail assets.
The transaction is valued at C$3.8 billion, including debt, Pure Industrial said.
The company said it can accept a superior offer, subject to giving Blackstone a “right to match” and paying it a C$77 million termination fee.
Pure Industrial said it will continue to pay monthly distributions through the closing of the deal, which is expected next quarter.
BMO Capital Markets is Pure Industrial’s financial adviser and Goodmans LLP its legal counsel, while Greenhill & Co is giving a fairness opinion.
RBC Capital Markets and Citigroup are Blackstone’s financial advisers, while Osler, Hoskin & Harcourt LLP and Simpson Thacher & Bartlett LLP are its legal counsel.