Brookfield Asset Management and CPP Investments have entered into a definitive agreement to acquire LXP Industrial Trust in an all-cash transaction valued at approximately $5.2 billion. The valuation includes LXP’s net debt and preferred equity.
LXP shareholders will receive $61.20 in cash for each share they own. The purchase price represents a 12.3% premium to LXP’s 30-day volume-weighted average price and a 19.8% premium to its 90-day volume-weighted average price through July 17, 2026.
The transaction has been unanimously approved by LXP’s board of trustees. It is expected to close during the fourth quarter of 2026, subject to shareholder approval and other customary closing conditions.
The agreement is not subject to a financing condition, meaning Brookfield and CPP Investments are not relying on obtaining additional financing as a condition to complete the acquisition. This structure can provide greater certainty for LXP and its shareholders.
LXP owns approximately 53 million square feet of modern warehouse and logistics space across 108 properties. Its portfolio is concentrated in industrial markets throughout the Sunbelt and Midwest.
The properties are characterized by strong occupancy, modern facilities and long-duration leases. These features are designed to generate durable cash flows while providing exposure to continued demand for well-located logistics and distribution facilities.
LXP has spent several years transforming itself into a pure-play industrial real estate investment trust. The company focuses on Class A warehouse and distribution properties across 12 target markets.
Brookfield and CPP Investments believe the portfolio is positioned to benefit from structural changes affecting industrial real estate. These include the expansion of domestic manufacturing, changes in global supply chains and population growth across several Sunbelt markets.
The buyers also see opportunities to increase value through active asset management. Brookfield’s real estate operating capabilities will be combined with CPP Investments’ long-term institutional capital.
The merger agreement includes a 40-day go-shop period that expires on August 28, 2026. During this period, LXP and its advisers can actively seek, evaluate and negotiate alternative acquisition proposals.
LXP may terminate the agreement to accept a superior proposal, subject to the conditions of the merger agreement and payment of a termination fee. There is no guarantee that the go-shop process will produce another offer.
LXP has agreed to suspend common-share dividend payments until the transaction closes or the merger agreement is terminated. The company still plans to release its second-quarter 2026 financial results on July 29 but will no longer host quarterly earnings calls or webcasts while the deal is pending.
Once the transaction is completed, LXP’s shares will stop trading on the New York Stock Exchange. The company will become privately held under the ownership of Brookfield and CPP Investments.
Brookfield manages more than $1 trillion across real estate, infrastructure, energy, private equity and credit. CPP Investments managed approximately $793.3 billion for more than 22 million Canada Pension Plan contributors and beneficiaries as of March 31, 2026.
BofA Securities is serving as LXP’s lead financial adviser, while J.P. Morgan is acting as co-financial adviser. Citigroup and Morgan Stanley are advising Brookfield and CPP Investments.
KEY QUOTES:
“This transaction is the culmination of the LXP team’s successful execution of our strategic plan to transform LXP into a pure-play industrial REIT, curate a best-in-class portfolio, and implement our development program. The LXP Board unanimously determined that this transaction with Brookfield and CPP Investments fully maximizes value for our shareholders.”
Thomas W. Eglin Jr., Chairman and Chief Executive Officer of LXP Industrial Trust
“LXP has assembled a high-quality industrial portfolio with modern logistics assets in attractive markets. The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management. We’re excited to partner with CPP Investments and build on LXP’s strong foundation.”
Lowell Baron, Chief Executive Officer of Brookfield Real Estate
“The industrial sector, particularly in the U.S., continues to offer attractive long-term investment opportunities, supported by structural demand drivers including domestic manufacturing, evolving global supply chains and population growth across key Sunbelt markets. We look forward to partnering with Brookfield and combining their operating expertise with a well-positioned portfolio to generate sustainable investment returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”
Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments
