Brookfield and CPP Complete $5.2 Billion All-Cash Acquisition of LXP
Key Facts
Brookfield Asset Management and CPP Investments announced the completion of their all-cash acquisition of LXP Industrial Trust in a transaction valued at approximately $5.2 billion, including net debt and preferred stock, according to the company’s filing with the U.S. Securities and Exchange Commission. The agreement provides for payment of $61.20 in cash for each common share upon the merger’s effectiveness, without interest. Completion turns the agreement announced on July 20 into a closed transaction and places LXP’s industrial assets under the investors’ ownership. The offer price represented a premium of 12.3% to the volume-weighted average price over 30 days and 19.8% over 90 days, through July 17. Brookfield’s real estate chief said the acquisition aligns with investing in high-quality properties with stable cash flows, with potential to create value through active asset management.
LXP shareholders voted to approve the merger on October 26, before its completion was announced. The vote recorded 48,363,045 votes in favor, against 255,313 votes opposed, while 52,111 shares abstained. The result shows that approval of the transaction preceded its closing by several days. The agreement had provided the company with a 40-day “go-shop” period, which ended on August 28, to explore alternative offers. Completion of the deal was also not conditional on financing, according to the initial announcement of the agreement.
The transaction covers a portfolio of about 107 properties in which LXP holds interests, across 13 U.S. states, with approximately 51.8 million square feet of leasable area as of September 30. The portfolio was 97.0% occupied by net leasable area on that date. On a same-property basis, the leased share rose to 97.0% from 96.6% a year earlier. These figures put the scale of the assets passing to the new owners in the context of the portfolio’s operating performance just before completion. The company had reported same-property net operating income growth during the third quarter and the first nine months of 2026.
During the third quarter, the company completed new leases and renewals covering 4.2 million square feet. Base rents tied to those leases increased 42.8%, while cash base rents rose 34.3%, excluding fixed-rate renewals and tenant improvement reimbursements. Over the same period, same-property net operating income grew 2.6% compared with the third quarter of 2025; growth was 1.7% in the first nine months compared with the same period a year earlier. The company attributed net operating income growth primarily to higher cash base rents. The leasing and operating growth results reflect the activity the portfolio recorded in the months before the acquisition was completed.
As part of the merger arrangements, LXP agreed to suspend payment of its regular quarterly distributions on common shares. Before completion, the company’s stock closed at $61.18 on October 30, compared with the transaction consideration of $61.20 per share. On the same day, Brookfield Asset Management shares closed at $48.26, and Brookfield Corp shares closed at $39.28. S&P Dow Jones Indices announced that LXP would be removed from the S&P SmallCap 600, to be replaced by AvePoint, with the change taking effect before trading opened on November 2. The index change date coincides with the completion of the acquisition announced that day.