UK-based Industrials Reit will delist from the JSE two months after the US private equity giant Blackstone offered to buy the property company in a £700m (R16.6bn) deal.
In a short statement on Monday, the company said it had been granted approval by the JSE to proceed with delisting after the approval of the transaction.
Industrials Reit will delist from the JSE on Tuesday but will retain its primary listing in London where demand for multi-let industrial (MLI) properties has been buoyant, boosted in part by e-commerce and the limited supply of industrial facilities in the UK.
Demand for industrial storage space and warehousing rose in the UK as more people buy goods online. Retailers want to store their goods in these parks that are often located near densely populated cities and towns.
Small industrial firms are renting MLI units — used as hybrid offices, manufacturing and assembly space — rather than renting an office at one building and a factory at another.
The company moved its primary listing to London Stock Exchange in 2021, in line with its strategic focus on MLI parks, which proved resilient during the pandemic.
Industrials Reit and its peers fared better on the stock markets relative to other counters with a broad diverse portfolio over three years of pandemic.
New York Stock Exchange-listed Blackstone saw the opportunity in this, with Industrials Reit a willing seller.
Its shareholders received £1.68 (R39.85) per ordinary share, representing a premium of 42.4% to the closing price of £1.18 per share at the time when the announcement was made in April.
Blackstone is the world’s largest alternative investment manager with about $975bn in assets under management. A leader in real estate investing, its global portfolio is valued at about $577bn, while property assets under management total about $326bn.
Blackstone in 2022 inked one of the largest private real estate deals when it reinvested in its European last-mile delivery business Mileway for €21bn.
Business Day reported in January that Industrials Reit was off to a good start in 2023, posting rental increases averaging more than 20%.
With Nico Gous
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