In a twist-filled corporate saga that could rival a courtroom drama, U.S. private equity titan Blackstone has clinched a deal to acquire Warehouse REIT for £470 million ($638 million) in cash, even after a contentious tug-of-war over asset valuations threatened to derail the transaction.
On Wednesday, Warehouse REIT confirmed it had accepted the revised takeover bid, which arrives via a newly formed Blackstone vehicle, Wapping Bidco Ltd. The offer amounts to 110.6 pence per share, inclusive of a 1.6 pence interim dividend — a 34.2% premium over Warehouse REIT’s February 28 closing price of 82.4 pence.
Behind the Bid: Premium Offers and a Property Dispute
The acquisition drama has unfolded over months, with Blackstone launching five separate offers before finally breaking through. Earlier in March, the investment firm had tabled a higher £489 million proposal, which Warehouse REIT deemed fair — but due diligence exposed “red flags”, especially regarding the valuation of the REIT’s Radway Green development asset.
By May 12, Blackstone withdrew the £489M offer, citing fundamental disagreements over portfolio assessments. Despite efforts by Warehouse REIT to defend its valuation, Blackstone remained unconvinced, pushing forward with the lower, fifth offer that has now been accepted.
“The company’s growth has been stifled by a challenging macroeconomic environment, high interest rates, and limited access to new equity,” said Neil Kirton, chair of Warehouse REIT. “This deal expedites and de-risks the value creation we had hoped to achieve independently.”
