Blackstone lowers offer for warehouse Reit, extends deadline

FUNDS managed by Blackstone have lowered an offer to purchase Warehouse real estate investment trust (Reit) Plc after matters uncovered in due diligence made a previous bid unworkable, according to a statement. 

Blackstone submitted a final offer of 110.6 pence per share on May 19, valuing the real estate trust at roughly £470 million (US$633 million), according to a statement from Warehouse Reit on Friday (May 30). That is down from a previous proposal of 115 pence per share. 

Blackstone informed Warehouse Reit’s board earlier this month it would not proceed with its offer following its due diligence procedures. In particular, Blackstone highlighted varying views on the value of a development asset at Radway Green.

Blackstone’s deadline for its firm bid has been extended to Jun 6 to provide for finalizing terms and conditions, according to the statement. The alternative asset manager has been vying to take over Warehouse Reit for months. BLOOMBERG