Blackstone’s potential offer for Warehouse REIT has been thrown into doubt, with the US private equity giant contesting the valuation of a development asset in the portfolio.
In an announcement today, Warehouse REIT’s board said that Blackstone had written to it on 7 May “raising several matters arising from its due diligence”.
The most significant of which relates to contrasting views on the valuation of the company’s development asset at Radway Green.
As a result, Blackstone stated that it was not in a position to proceed with its offer on the financial terms of the final indicative proposal of 115.0p per share (which values the company at £489m) made at the end of March.
The board had said that it would be minded to recommend this offer.
Warehouse REIT’s board today added: “The board is engaged with its financial advisers, its independent valuer and Blackstone in order to assess the merits of each of Blackstone’s points, as well as to highlight potential value accretive items which may not be reflected in Blackstone’s ongoing assessment.”
Under takeover laws, Blackstone had until 5pm today (12 May) to either announce a firm intention to make an offer for Warehouse REIT or announce that it does not intend to make an offer.
That has now been extended to 30 May 2025.
