LONDON: Brookfield Global Asset Management has reached agreement to acquire Tritax EuroBox plc in a £557 million deal.

Titanium Ruth Bidco Limited, a newly formed company indirectly owned by one of Brookfield’s real estate private funds, has reached an agreement with Tritax EuroBox plc for a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Tritax EuroBox.

The acquisition, valued at approximately £557 million, will be implemented through a Court-sanctioned scheme of arrangement under Part 26 of the 2006 Act.

Under the terms of the acquisition, each Tritax EuroBox shareholder will receive 69.0 pence in cash per share, equivalent to 82.4 cents at the current exchange rate. This represents a 6% premium to the SEGRO offer of 65.1 pence as of October 9, 2024, and a 28% premium to the closing price of 53.8 pence on May 31, 2024.

However, it is a 12% discount to Tritax EuroBox’s last reported IFRS NAV and EPRA NDV per share of 93.9 cents as of March 31, 2024.

The acquisition implies an enterprise value of approximately £1,102 million based on Tritax EuroBox’s net debt as of March 31, 2024.

Brookfield is an experienced and knowledgeable investor in European real estate markets, with a clear track record of investment in logistics-focused real estate assets.

It has for some time tracked and admired the logistics portfolio that the management team of Tritax EuroBox has built over recent years under the guidance of the board of Tritax EuroBox.

Brookfield believes that the high-quality portfolio of assets that Tritax EuroBox has assembled fits well with its diverse global logistics portfolio which currently covers over 85 million square feet of space.

Commenting on this announcement, Robert Orr, the Chair of Tritax EuroBox, said: “The board of Tritax EuroBox remains intensely focused on delivering value for Tritax EuroBox shareholders. The cash offer from Brookfield represents a premium to the current value of the SEGRO offer and ensures that Tritax EuroBox shareholders will benefit from a significant uplift over the undisturbed value of their investment with flexibility to reinvest as they see fit.”

Commenting on this announcement, Brad Hyler, Head of Real Estate in Europe at Brookfield, said: “Tritax EuroBox has a high-quality portfolio of logistics assets in strategic locations across Europe. These assets are complementary to our existing portfolio and, using our global real estate expertise, we will actively manage these assets, provide access to capital, help build new relationships with our network of tenants and support the overall growth of the platform.”