Plymouth Industrial is making the pivot from public to private after inking a merger.
Makarora Management and Ares Alternative Credit agreed to acquire all outstanding shares of the Boston-based real estate investment trust’s common stock and limited partnership interests for $22 per share, Plymouth announced. The all-cash deal values Plymouth at $2.1 billion, including outstanding debt.
Sixth Street Partners submitted an unsolicited takeover bid for the company in mid-August; Makarora and Ares’ agreement valued the company at nearly twice the amount of the Sixth Street deal.
In a statement, Makarora founder Chad Pike said the “properties are well positioned to capitalize on strong industrial demand from these major population centers,” referencing how the Midwest and East Coast properties are located a day’s drive from a majority of the country’s population.
Plymouth’s board of directors approved the merger, but shareholders still need to have their say. Should all sail through, the deal is expected to close early next year.
Plymouth is also launching a 30-day “go-shop” period to solicit and consider other offers for the company, which will pay its third-quarter dividend in the coming days, but does not intend to file an earnings release for the quarter.
The real estate investment trust owns 226 buildings across 10 markets, adding up to more than 32 million square feet in 10 markets.
Last year, Plymouth brought in more than $250 million in a partnership with Sixth Street on a portfolio concentrated in Chicagoland.
Sixth Street agreed to put in $116 million for a 65 percent stake in Plymouth’s Chicago-area holdings, 34 properties totaling 5.9 million square feet. The investment gave the portfolio a gross asset value of $356 million when factoring in $178 million in mortgages on the buildings.
Makarora is a relatively new player in real estate investing. Longtime Blackstone executive Pike launched the firm only last year.
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