Plymouth Industrial is making the transition from public to private after a merger.
Makarora Management and Ares Alternative Credit have agreed to acquire all outstanding shares of the Boston-based real estate investment trust’s common stock and limited partnerships for $22 per share, Plymouth announced. The 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 double 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,” referring to how the Midwest and East Coast properties are within a day’s drive of the majority of the country’s population.
Plymouth’s board of directors has approved the merger, but shareholders still have to have their say. If all goes ahead, 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 plan to file an earnings release for the quarter.
The real estate investment trust owns 226 buildings across 10 markets, representing more than 32 million square feet in 10 markets.
Last year, Plymouth raised more than $250 million in a partnership with Sixth Street for a portfolio concentrated in Chicagoland.
Sixth Street agreed to put up $116 million for a 65 percent stake in Chicago’s Plymouth-area assets, 34 properties totaling 5.9 million square feet. The investment gave the portfolio a gross asset value of $356 million, taking into account $178 million in mortgages on the buildings.
Makarora is a relatively new player in the field of real estate investing. Pike, former CEO of Blackstone launched the company only last year.
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