Blackstone increases Warehouse Reit bid to £489 million

Blackstone has made a final bid of £489 million to acquire Warehouse Reit, a listed landlord in the UK. This bid follows a recent uptick in activity in the commercial property sector after a tough period for the market. The US private equity firm is the world's largest commercial property investor. Before this bid, Blackstone attempted four offers with another private equity firm, Sixth Street, but those were all rejected by Warehouse Reit. Sixth Street has now withdrawn from the bidding process. Blackstone's new all-cash offer values Warehouse Reit at 115p per share, an increase from its earlier offer of £470 million made in February. Warehouse Reit’s board stated that the previous offer did not adequately reflect the company's value and assets. Blackstone argues that its latest proposal offers shareholders a strong alternative, with a nearly 40% premium compared to the share price just before the takeover news went public. This bid comes as US private capital groups take advantage of lower property values across Europe. Real estate prices have dropped significantly due to rising interest rates over the past two years, which has put pressure on listed landlords. Market analysts note that European industrial and logistics properties have lost about 20% of their peak value. Many smaller property firms are facing difficulties and may need to sell or consolidate. Blackstone has been active in this space, having merged its logistics portfolios from previous acquisitions into a new company called Indurent. Under UK rules, Blackstone must submit a firm offer for Warehouse Reit by Monday.