(Reuters) -U.S. private equity firm Blackstone on Thursday raised its offer for Warehoutilize REIT to about 489 million pounds ($666 million), topping an agreed deal for the London-listed company from industest peer Tritax Big Box REIT.
U.S.-based companies have been snapping up British assets recently, taking advantage of weaker UK valuations. UK-listed real estate investment trusts have also seen a flurry of deals as players see to bulk up in an uncertain economic backdrop.
Blackstone stated its new offer valued Warehoutilize REIT shares at 115 pence apiece, an 8.3% premium to their closing price on June 3, the day before Blackstone disclosed its initial bid of 110.6 pence per share.
Warehoutilize REIT stated on Thursday it was reviewing Blackstone’s new offer, which comprises 113.4 pence per share in cash and a dividfinish of 1.6 pence per share.
Shares in Warehoutilize REIT closed the day up 2.7% at 115.4 pence, a little above the offer price, suggesting some investors believe the bid battle could have further to run.
Warehoutilize REIT last month accepted a cash-and-stock offer from Tritax Big Box REIT that valued it at about 114.2 pence per share, or 485.2 million pounds.
Tritax on Thursday stated it continued to believe that its purchaseout proposal was a “compelling proposition” for Warehoutilize shareholders.
Blackstone has stated it wants to add Warehoutilize REIT to its logistics portfolio, while Tritax has stated the business is complementary to its own.
Other British companies at the centre of bid battles include scientific instruments buildr Spectris and healthcare real estate investor Assura.
($1 = 0.7346 pounds)
(Reporting by Shashwat Awasthi and Yamini Kalia. Additional reporting by Raechel Thankam Job and Prerna Bedi in Bengaluru. Editing by Tasim Zahid, Mark Potter and Jan Harvey)
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