Brookfield and CPP Investments Complete $5.2 Billion LXP Industrial Trust Take-Private

NEW YORK and TORONTO — Brookfield Asset Management (NYSE: BAM, TSX: BAM) and Canada Pension Plan Investment Board (CPP Investments) announced Nov. 2, 2026, that they have completed their acquisition of LXP Industrial Trust in an all-cash transaction valued at approximately $5.2 billion, including net debt and preferred equity.

LXP shareholders will receive $61.20 per share in cash. With the deal closed, LXP shares no longer trade on the New York Stock Exchange, and the industrial real estate investment trust is now privately held.

Deal Terms and Structure of the LXP Industrial Trust Acquisition

The transaction was structured as a take-private of the industrial REIT rather than a purchase of individual properties. The $5.2 billion figure is an enterprise value that includes net debt and preferred equity, and does not represent equity consideration alone.

The agreed price of $61.20 per share represented a 12.3% premium to LXP's 30-day volume-weighted average price and a 19.8% premium to its 90-day VWAP as of July 17, 2026. The deal was announced in July, and LXP's board unanimously approved the agreement before shareholders gave their approval ahead of closing.

Based on the stated enterprise value and portfolio size, the transaction equates to approximately $100 per square foot. That figure reflects enterprise value, including debt and preferred equity, and is not an asset-level sale price.

LXP's 107-Property Industrial Portfolio

LXP's portfolio comprises 107 industrial properties spanning approximately 52 million square feet in markets across the Sunbelt and Midwest. The properties average roughly 486,000 square feet each. Brookfield and CPP Investments said the assets have strong occupancy and long-duration leases that generate durable cash flows.

Brookfield said the properties will be integrated into its global logistics platform, which spans more than 255 million square feet across more than 850 properties in 20 countries. The LXP portfolio adds approximately 20% more square footage to that platform.

Executive Comments From Brookfield and CPP Investments

"This acquisition reflects our conviction in the long-term fundamentals of the U.S. industrial sector," said Lowell Baron, Chief Executive Officer of Brookfield Real Estate. "We are acquiring a portfolio of modern logistics assets at an attractive basis in markets benefiting from strong demand for large-scale distribution facilities with limited supply. Combined with durable in-place cash flows, embedded rental growth and our operating expertise, these dynamics create a compelling opportunity to drive value for our investors."

Sophie van Oosterom, Managing Director, Head of Real Estate at CPP Investments, said the acquisition "adds a high-quality, scaled portfolio of modern logistics properties to our diversified portfolio of U.S. real estate investments." She added: "With strong occupancy and exposure to key distribution markets, we believe LXP is well positioned to capture further value as logistics markets evolve, supporting attractive long-term returns for the CPP Fund."

CPP Investments reported that the Canada Pension Plan Fund totaled CDN$863.6 billion as of June 30, 2026. Brookfield Asset Management is headquartered in New York and reports more than $1 trillion of assets under management across infrastructure, energy, private equity, real estate and credit.

Advisors on the Transaction

BofA Securities, Inc. served as lead financial advisor to LXP, with J.P. Morgan Securities LLC as co-financial advisor. Hogan Lovells Cadwalader US LLP served as legal advisor to LXP.

On the buyer side, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC served as lead financial advisors. Goldman Sachs & Co. LLC, Santander and Scotiabank served as financial advisors, and Sumitomo Mitsui Banking Corporation served as a structuring advisor. Gibson, Dunn & Crutcher LLP and Thompson Hine LLP served as legal advisors to Brookfield and CPP Investments, with DLA Piper LLP serving as legal advisor to CPP Investments in connection with certain aspects of the transaction. Dechert LLP served as legal advisor to Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC in connection with certain aspects of the transaction.

Industrial Market Context: Absorption, Vacancy and Rents

The closing comes as the U.S. industrial market moves past the supply surge that followed the pandemic. In the first half of 2026, U.S. big-box industrial net absorption reached 88 million square feet, nearly double the 45 million square feet of new supply, according to Colliers data.

Big-box industrial vacancy declined to 7.2% in the third quarter of 2026, with absorption exceeding new supply for the second consecutive quarter. National industrial asking rents rose 3.2% year over year to $10.55 per square foot, while average big-box rents reached $8.87 per square foot, up 3.9% year over year in the first half.

Vacancy remains elevated relative to the tight conditions of the early 2020s, while rent growth has reaccelerated as demand has caught up with new deliveries. The buyers cited limited supply in markets serving modern distribution requirements, along with embedded rental growth, as part of their rationale for the acquisition.

Outlook

The all-cash take-private gives Brookfield and CPP Investments control over leasing, capital expenditure and asset-management decisions across the 107-property portfolio. For LXP shareholders, the cash consideration removes exposure to public-market price movements. The deal adds scaled Sunbelt and Midwest logistics exposure to Brookfield's global platform and to CPP Investments' U.S. real estate holdings.

Sources

Brookfield Asset Management press release, Nov. 2, 2026: https://bam.brookfield.com/press-releases/brookfield-and-cpp-investments-complete-acquisition-lxp-industrial-trust