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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.”

Legal & Financial Advisers in the Spotlight

The complex negotiations have drawn heavyweight advisers from both sides. Blackstone and Bidco are represented by Simpson Thacher & Bartlett LLP, with Rothschild & Co. and Deutsche Numis providing financial guidance. On Warehouse REIT’s side, Reed Smith LLP leads the legal effort, while Jefferies International Ltd. and Peel Hunt offer financial advice.

The transaction will proceed through a scheme of arrangement under the UK Companies Act 2006, requiring approval from at least 75% of shareholders during a general and court meeting — dates for which remain pending.

Blackstone has already secured irrevocable commitments from directors holding 0.28% of the REIT’s shares to vote in favor of the deal.

Regulatory Review and Timeline

The acquisition still faces scrutiny from the UK’s Competition and Markets Authority, whose antitrust clearance is necessary before the scheme can become effective. Both parties expect the deal to close by Q4 2025, provided all regulatory and shareholder hurdles are cleared.

This acquisition marks another high-stakes chess move by Blackstone in the European property market, underscoring its appetite for strategic assets even amid uncertain valuations and macroeconomic volatility.