Brookfield Asset enters definitive deal for Peakstone

Executive Summary

• Brookfield Asset Management Ltd. has entered into a definitive agreement to acquire all outstanding shares of Peakstone Realty Trust for $21.00 per share in an all-cash transaction.
• The acquisition implies an enterprise value of approximately $1.2 billion and is expected to close by the end of Q2 2026, subject to shareholder approval and customary conditions.
• Upon closing, Peakstone will delist from the NYSE and become a privately held company, with its industrial portfolio (focused on IOS and traditional industrial properties) integrating into Brookfield's real estate platform.

Key Details

• Transaction Consideration: $21.00 per share in all-cash.
• Implied Enterprise Value: ~$1.2 billion.
• Premiums: 34% premium to Jan 30, 2026 closing price; 46% premium to 30-day VWAP; 51% premium to 90-day VWAP.
• Acquirer: Brookfield private real estate fund.
• Closing Timeline: Expected by end of Q2 2026; outside date is August 2, 2026.
• Go-Shop Period: 30-day period expiring March 4, 2026, allowing Peakstone to actively solicit and consider alternative acquisition proposals.
• Termination Fee: Applicable if Peakstone terminates to accept a superior proposal, subject to agreement terms and Brookfield's notice/negotiation rights.
• Dividend Suspension: Peakstone has suspended its regular quarterly dividend effective immediately until the earlier of closing or termination of the definitive agreement.
• Portfolio Composition: Peakstone completed a strategic transformation in Dec 2025, disposing of all office properties. Remaining portfolio consists of 76 industrial properties (60 industrial outdoor storage/IOS, 16 traditional industrial).
• Delisting & Status: Peakstone shares will cease trading on the NYSE; company will become privately held upon completion.
• Financial Reporting: Peakstone to release Q4 and full-year 2025 results in late Feb 2026; no conference call or webcast will be held due to the pending transaction.
• Advisers:
• Peakstone: BofA Securities Inc. (exclusive financial adviser), Latham & Watkins LLP (legal adviser).
• Brookfield: Citigroup Global Markets Inc. (financial adviser), Gibson, Dunn & Crutcher LLP (legal adviser).

Notable Quotes

• Michael Escalante, CEO of Peakstone: "We are pleased to enter into this agreement with Brookfield, which will deliver significant value to Peakstone shareholders... This transaction recognizes the value of our industrial portfolio and the progress we have made expanding our IOS platform."
• Lowell Baron, CEO of Brookfield's Real Estate Business: "This acquisition is an exciting opportunity to expand Brookfield's industrial real estate platform with Peakstone's high-quality and well-diversified portfolio, which will benefit from strong long-term fundamentals for the warehouse and iOS sectors."