Brookfield Scoops Up Industrial REIT Peakstone in $1.2B Deal

Brookfield Asset Management is taking Peakstone Realty Trust private in a $1.2 billion all-cash deal, snapping up the industrial-focused real estate investment trust less than two months after it completed a full exit from the office sector.

A Brookfield private real estate fund agreed to pay $21 a share for Peakstone, a 34 percent premium on its stock price before the deal was announced, according to a release from the companies. The transaction values the El Segundo-based REIT at roughly $1.2 billion on an enterprise basis.

The acquisition gives Brookfield control of a 76-property industrial portfolio with a heavy tilt toward industrial outdoor storage, a niche asset class drawing growing investor interest for its low capital requirements and rent growth tied to logistics, construction and infrastructure uses.

The deal was framed as a long-term bet on warehouse and IOS fundamentals, with Brookfield Real Estate chief executive officer Lowell Baron calling Peakstone’s holdings “high-quality and well-diversified.”

The deal includes a 30-day go-shop period, allowing Peakstone to solicit competing bids through March 4. The REIT’s board unanimously approved the transaction, which is expected to close by the end of the second quarter, pending shareholder approval and other customary conditions.

Peakstone also agreed to suspend its quarterly dividend until the deal either closes or terminates. The outside date for closing is Aug. 2.

Once completed, Peakstone will be delisted from the New York Stock Exchange and folded into Brookfield’s sprawling real estate platform, which already spans logistics, multifamily, hospitality and specialty property types across global markets.

Peakstone finished shedding its office holdings in December, completing a multiyear repositioning into an industrial-only REIT. The portfolio includes 60 IOS properties and 16 traditional industrial assets spread across multiple markets.

Brookfield has played on both sides of the outdoor industrial sector. A year ago, Brookfield Asset Management sold a 13-property IOS portfolio to Realterm for $277 million, or $438 per square foot across the spread.