(Reuters) -UK’s Warehouse REIT has agreed to sell itself to Blackstone for 470 million pounds ($635.35 million), days after the investment firm lowered its bid for the company due to valuation-related issues uncovered during due diligence.
The 110.6 pence per share offer price agreed on Wednesday represents a 34.2% premium to Warehouse REIT’s closing stock price on February 28, the day before Blackstone’s initial bid with global investment firm Sixth Street Partners was disclosed.
Blackstone raised its bid to 489 million pounds in March but knocked off the sweetener, citing differing views on the value of an asset.
The final offer price includes a dividend of 1.6 pence per share.
“The company’s growth has been constrained by the weak macroeconomic backdrop, high interest rates, and an inability to raise new equity,” said Neil Kirton, the chair of Warehouse.
Kirton said these factors, paired with the current macroeconomic conditions, make Blackstone’s offer particularly attractive.
U.S.-based firms have been snapping up British assets recently, taking advantage of a market that is plagued with comparatively weaker valuations and stunted growth.
In recent months, companies such as Dowlais and Deliveroo have been bought out by their American rivals or by investment firms.
($1 = 0.7398 pounds)
(Reporting by Yamini Kalia and Anandita Mehrotra in Bengaluru; Editing by Shailesh Kuber and Anil D’Silva)
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