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Brookfield Asset Management has agreed to acquire US-listed industrial real estate investment trust Peakstone Realty Trust in an all-cash transaction valued at about USD 1.2 billion, as it seeks to capitalise on rising demand for warehouses and industrial storage linked to the expansion of artificial intelligence infrastructure. Under the proposed deal, Brookfield will acquire all outstanding Peakstone shares at USD 21 per share, representing a premium of around 34 per cent to the stock's previous closing price. Peakstone's shares rose sharply following the announcement. The acquisition is expected to close by the end of the second quarter, subject to customary conditions. Peakstone owns a portfolio of 76 industrial assets across the US and recently exited the office segment to focus exclusively on industrial real estate, aligning with Brookfield's broader strategy to scale its industrial platform.
Brookfield Asset Management has announced an agreement to acquire industrial real estate investment trust Peakstone Realty Trust in a transaction valued at approximately USD 1.2 billion, marking a strategic move to expand its exposure to warehouse and industrial storage assets amid growing demand from data-intensive industries. Advertisement
Under the terms of the deal, Brookfield will purchase all outstanding shares of Peakstone for USD 21 per share in cash. The proposed offer represents a premium of about 34 per cent to Peakstone's share price at the end of last week. Following the announcement earlier this week, Peakstone's shares surged by around 33 per cent in early trading, reflecting strong investor response to the acquisition.
Brookfield said the transaction would be used to strengthen and scale its industrial real estate platform, particularly within the warehouse and industrial outdoor storage segments. Demand for such assets has increased sharply in recent years, driven in part by the rapid expansion of artificial intelligence infrastructure and the growing number of data centres requiring large-scale storage and logistics support.
Speaking at an investor conference late last year, Brookfield's chief executive officer Bruce Flatt had indicated that global demand for AI-related infrastructure was accelerating, as governments and major cloud service providers sought to expand capacity and secure locations to house computing and data resources. The acquisition of Peakstone is aligned with this broader investment theme.
California-based Peakstone Realty Trust owns a portfolio of 76 industrial properties across the United States. These include 60 industrial outdoor storage assets and 16 traditional industrial properties, giving the company a focused footprint in logistics-oriented real estate. The REIT has been repositioning its portfolio to concentrate exclusively on industrial assets, completing the sale of all its office properties in the past month to sharpen this strategic focus.
Brookfield noted that the transaction is expected to be completed by the end of the second quarter, subject to regulatory approvals and other customary closing conditions. Citigroup Global Markets is acting as Brookfield's financial adviser on the deal, while Gibson, Dunn & Crutcher LLP is serving as its legal adviser.
The acquisition underscores continued institutional interest in industrial real estate, particularly assets that support technology-led growth sectors, even as other segments of the commercial property market face more subdued conditions.
Source - Reuters
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