RE: Done deal5 Jun 2025 12:36
Reduced Offer:
Blackstone's final offer of 115p per share in March was reduced to 110.6p per share after due diligence revealed valuation differences, especially regarding the Radway Green development.
The main sticking point was the valuation of the Radway Green development site in Cheshire, where Blackstone disagreed with the previous valuation.
Blackstone's due diligence process, including the review of the Radway Green site, identified valuation discrepancies that led to the lower offer.
The Warehouse REIT board will recommend that shareholders vote in favor of the revised offer.
The offer is expected to be put to a court and general meeting, and Warehouse REIT shares traded slightly higher on the news.
Warehouse REIT had previously rejected a Β£470 million combined bid from Blackstone and Sixth Street Partners in March, according to Property Week. Sixth Street later withdrew, leaving Blackstone to make its final offer.
The Warehouse REIT board noted that the company's growth has been constrained by weak macroeconomic conditions, high interest rates, and an inability to raise new equity.
The offer represents a premium of 34.2% to the undisturbed price, providing shareholders with an opportunity to receive cash.