Brookfield and CPP take LXP Industrial private for $5.2B

Brookfield Asset Management and CPP Investments have agreed to acquire LXP Industrial Trust in an all-cash transaction valued at approximately $5.2 billion including net debt and preferred equity, paying $61.20 a share. For developers holding Sun Belt industrial land, the deal sets a public reference point for what institutional capital will pay for finished, leased bulk distribution.

Why it matters

Take-privates happen when the public market and the private market disagree about the same rent roll. Here the disagreement is 12.3%, the premium to LXP’s 30-day volume-weighted average price through July 17, and 19.8% against the 90-day VWAP. The wider 90-day gap says the discount had been persistent rather than a one-week dislocation.

The developer-facing number is the implied price per square foot. Roughly $98 a foot for a portfolio that is 96.6% leased and 93% new bulk distribution sits below what it costs to build the same product in most of these markets today. When stabilized assets trade below replacement cost, merchant-build spreads compress and the rational move shifts toward buying existing product or holding land rather than starting spec. That is the timing signal in this transaction.

The numbers

The portfolio is approximately 53 million square feet across 108 properties in Sun Belt and Midwest markets including Arizona, Texas, Indiana, Ohio, Tennessee, South Carolina, Georgia, and Florida. Average in-place rent is $5.28 per square foot. Amazon accounts for 6.7% of occupancy and the top ten tenants roughly a third.

One correction worth flagging: two widely read trade reports carried the price as $68.80 a share. LXP’s own 8-K exhibit and investor release both state $61.20, and that is the figure that reconciles with the disclosed 12.3% premium.

A 40-day go-shop period runs to 11:59 p.m. New York time on August 28, 2026, and the deal is expected to close in the fourth quarter. BofA Securities and J.P. Morgan Securities advised LXP.

What’s next

The go-shop is the live variable. If no competing bid emerges by August 28 on a portfolio priced under replacement cost, that silence is itself the market’s verdict on where industrial cap rates have settled. Compare against Prologis’ record Q2 leasing and Cushman & Wakefield’s sub-7% vacancy read.