Canada’s Brookfield Asset Management, one of the world’s largest real estate investors, is looking to acquire European logistics real estate firm Tritax EuroBox in a deal valued at £1.1bn ($1.44bn), including debt, according to a report by. Reuters.
This move is the latest indication of strong investor interest in warehouses and distribution centres, which have become highly sought after due to the e-commerce boom.
The cash offer from Brookfield could ignite a bidding war for Tritax EuroBox, with the company having just last month backed an all-share takeover bid from British warehouse owner Segro. However, Tritax now plans to withdraw its support for Segro’s offer in favour of Brookfield’s bid.
Segro responded by defending its all-stock proposal, emphasising that it would allow Tritax EuroBox shareholders to retain exposure to the European industrial and logistics sector, with the option to cash in later due to the “significant liquidity” of Segro’s FTSE 100-listed shares.
Following the announcement, shares of Tritax EuroBox rose by 2% to 70.5 pence, while Segro’s stock dipped 0.3% after earlier gains.