Brookfield wins round Tritax Eurobox in £1.1bn tie-up
Brookfield has agreed terms to buy Eurobox Tritax just weeks after the European real estate investment trust (REIT) backed an offer from warehouse giant Segro.
In a statement to the market this morning, the boards of the two companies said they reached an agreement on a £1.1bn deal, including Tritax’s debt.
The acquisition values Tritax at 69p per share, a six per cent premium to the implied value of Segro’s September offer and a 28 per cent premium to the undisturbed price.
Tritax said the terms of the deal were “fair and reasonable” and the board unanimously backed the offer, withdrawing their recommendation from Segro’s offer.
The acquisition is expected to complete later this year.
Robert Orr, chair of Tritax said: “The cash offer from Brookfield represents a premium to the current value of the Segro offer and ensures that Tritax EuroBox shareholders will benefit from a significant uplift over the undisturbed value of their investment with flexibility to reinvest as they see fit.”
Tritax Eurobox specialises in managing and investing in logistics-oriented real estate – also known as “big box” properties – which have become especially popular REITs since the pandemic.
However, since its IPO, Tritax has traded at a persistent discount to NAV, limiting its ability to grow and raise further equity.
Brookfield was in talks with the struggling FTSE 250 member over the summer but did not submit a formal offer.
“Bringing Tritax under private ownership will both better position it for further investment into existing assets, coupled with the benefits that accrue from being part of a scaled, better capitalised and actively growing real estate platform,” the Canadian private equity giant said.