Brookfield, CPP Investments to buy LXP Industrial Trust for $5.2 billion

Brookfield Asset Management and Canada Pension Plan Investment Board agreed to acquire LXP Industrial Trust in an all-cash deal valued at about $5.2 billion, a sign that investors are still willing to pay for warehouse and logistics assets even as higher borrowing costs have slowed much of commercial real estate. LXP shareholders will receive $61.20 a share, a 12.3% premium to the trust’s 30-day volume-weighted average price and a 19.8% premium to its 90-day VWAP.

LXP, which described itself as a REIT focused on Class A warehouse and distribution real estate investments, sits in one of the few property categories that has continued to attract capital. Warehouses and logistics centers have benefited from e-commerce distribution, supply-chain retooling and near-shoring, while retailers, manufacturers and logistics companies still need space to store and move goods. That basic demand has helped industrial real estate hold up better than offices and some other commercial property types.

The deal was announced July 20 from New York, Toronto and West Palm Beach, Florida, and is expected to close in the fourth quarter of 2026, subject to shareholder approval. For LXP investors, the transaction locks in a cash exit at a premium. For Brookfield and CPP Investments, it adds industrial property with the kind of long-duration cash flow that large institutions often seek when they are willing to wait out short-term volatility.

The acquisition also fits a broader shift in commercial property, where deep-pocketed buyers can step in when public-market valuations weaken. Brookfield has already shown a willingness to pursue large real estate control transactions, including a $5.9 billion offer in 2021 to buy the remaining stake in its real estate unit. CPP Investments, which reported net assets of $646.8 billion at the end of its first quarter of fiscal 2025, brings a balance sheet large enough to back multibillion-dollar bets on assets tied to distribution networks, transportation corridors and population growth.