Proxy Advisory Firms Support Blackstone’s Deal for WPT Industrial

Blackstone’s bid to buy WPT Industrial REIT of Toronto in the red-hot industrial REIT sector took a significant step forward last week when WPT shared that both Institutional Shareholder Services and Glass Lewis and Co. have recommended that unitholders of the REIT vote in favor of the deal.

In the $3.1 billion deal, Blackstone Real Estate Income Trust would acquire all of WPT’s outstanding trust units at $22 per unit in cash. A special meeting of unitholders is scheduled for Oct. 7.

The transaction price of $22 per unit represents a 17.1% premium to the closing price of the units on the Toronto stock exchange on Aug. 6, 2021, and a 19.5% premium to WPT’s 30-day volume-weighted average unit price on the Toronto stock exchange.

Elections Have Consequences

One example of the tussle over industrial REIT assets is the bidding war that recently broke out between Equity Commonwealth and Starwood Capital Group over Monmouth Real Estate Investment.

The REIT had agreed to a sale to Equity Commonwealth despite Starwood’s protests that it was the better deal. Ultimately, though, Monmouth’s shareholders did not approve the sale to Equity Commonwealth.

This Blackstone deal shows that it is digging deeper into the industrial asset class. WPT acquires, develops, manages and owns distribution and logistics properties located in the United States. Its portfolio includes 109 properties across 19 states.

“Logistics remains one of our highest conviction themes as the sector continues to benefit from strong tailwinds driven by e-commerce,” said David Levine, senior managing director at Blackstone in prepared remarks from August. “We look forward to expanding our logistics presence across key US markets with the acquisition of this high-quality portfolio that WPT has built.”

ISS and Glass Lewis are leading independent proxy advisory firms that provide voting recommendations to institutional investors.