Brookfield and CPP Investments to Buy LXP Industrial for $5.2 Billion

Brookfield Asset Management and CPP Investments have agreed to acquire LXP Industrial Trust in an all-cash deal valued at $5.2 billion, according to The Wall Street Journal. The transaction marks one of the largest industrial real estate take-privates as institutional capital continues targeting logistics and warehouse assets.

LXP Industrial (NYSE: LXP) operates a portfolio of single-tenant industrial properties across the United States. The buyout consortium combines Brookfield's real estate investment platform with Canada Pension Plan Investment Board's long-term capital base, both of which have been active acquirers in the industrial property sector.

The deal reflects continued demand for industrial real estate despite higher interest rates pressuring property valuations over the past two years. Warehouse and distribution facilities have remained attractive to institutional investors betting on e-commerce growth and supply chain reconfiguration, even as cap rates have expanded from pandemic-era lows.

The $5.2 billion figure represents the enterprise value of the transaction, encompassing LXP's equity and debt. The all-cash structure eliminates the need for shareholder votes on deal consideration mix, though regulatory clearance and standard closing conditions remain.