Brookfield, CPP Investments to Acquire LXP Industrial Trust for $5.2B
The industrial REIT owns approximately 53 million square feet across 108 properties in the U.S.
By Isabelle Durso July 20, 2026 12:40 pm
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Brookfield Asset Management is lined up for a big industrial acquisition.
The global alternative asset manager with more than $1 trillion of assets under management has teamed with the Canada Pension Plan Investment Board (CPP Investments) to acquire LXP Industrial Trust in an all-cash deal valued at approximately $5.2 billion, the firms announced Monday.
LXP, a real estate investment trust (REIT) focused on Class A warehouse and distribution investments, owns one of the largest portfolios of warehouse and logistics facilities in the country, comprising approximately 53 million square feet across 108 properties in 12 markets in the Sun Belt and Midwest, according to the announcement.
Thomas W. Eglin Jr., chairman and CEO of LXP, said in a statement that the transaction is the “culmination of the LXP team’s successful execution of [its] strategic plan to transform LXP into a pure-play industrial REIT.”
Meanwhile, the deal was part of a continued interest in the U.S. industrial sector for CPP Investments, according to the firm’s managing director and head of real estate, Sophie van Oosterom.
“The industrial sector, particularly in the U.S., continues to offer attractive long-term investment opportunities, supported by structural demand drivers, including domestic manufacturing, evolving global supply chains and population growth across key Sun Belt markets,” van Oosterom said in a statement. “We look forward to partnering with Brookfield and combining their operating expertise with a well-positioned portfolio to generate sustainable investment returns.”
Lowell Baron, CEO of Brookfield Real Estate, added: “The acquisition aligns with our strategy of investing in high-quality real estate with durable cash flows and opportunities to create value through active asset management.”
The merger is expected to close in the fourth quarter of 2026. Bank of America Securities and J.P. Morgan Securities acted as financial advisers in the deal.
Under the terms of the agreement, LXP shareholders will receive $61.20 per share, or 12 percent more than the company’s volume-weighted average price for the 30 days ended July 17, according to the announcement.
News of the deal comes during a busy week for Brookfield, which also announced Monday that it formed a $2.1 billion joint venture with Healthpeak Properties to invest in outpatient medical buildings across the U.S.
And, last week, Commercial Observer reported Brookfield was in exclusive talks to acquire a stake in New York City’s 13-property Hudson Square Properties office portfolio and potentially replace Hines in the portfolio’s ownership structure.
Isabelle Durso can be reached at idurso@commercialobserver.com.
