Makarora Management and Ares Management have agreed to acquire Plymouth Industrial REIT in a $2.1 billion cash deal that takes the real estate trust private.
Under the deal announced on Friday, New York-based Makarora and Ares, based in Los Angeles, would acquire all outstanding shares of Plymouth’s common stock and limited partnership interests for $22 per share, with the buyers assuming certain outstanding debt, the REIT said in a statement.
The deal comes about two months after Boston-based Plymouth received a nonbinding buyout offer of $24.10 per share in cash from its strategic partner, Sixth Street Partners. The San Francisco-based global investment firm owned 9.99% of Plymouth's outstanding shares as of August.
It also comes as real estate merger and acquisition activity involving publicly traded REITs may be ticking up after a muted first half of 2025, when high interest rates and increased debt costs largely stalled transactions, according to S&P Global Ratings. Rayonier and PotlatchDeltic, REITs focused on owning and managing timberland, said this month that they plan to merge in an all-stock deal valued at $7.1 billion that would create one of the country’s biggest forestry and lumber giants.
The purchase price offered by Makarora and Ares is 50% above Plymouth’s stock price on Aug. 18, the day before Sixth Street made its nonbinding offer in a filing.
The transaction “will deliver significant, immediate and certain value to Plymouth shareholders,” Plymouth CEO and co-founder Jeff Witherell said in the statement.
Plymouth’s portfolio of industrial properties in the Midwest and East Coast "is well positioned to capitalize on strong industrial demand from these major population centers,” said Makarora CEO Chad Pike said in the statement. The REIT owned industrial buildings totaling about 32.1 million square feet as of June 30.
Plymouth said it plans a 30-day “go-shop period” set to expire Nov. 23 that allows the company and its financial advisors to initiate, solicit and consider other acquisition proposals.
The deal was unanimously approved by Plymouth's board of directors and is expected to close early next year, subject to approval by Plymouth's shareholders and other regulatory approvals and closing conditions.
For the record
KeyBanc Capital Markets and JP Morgan Securities were Plymouth Industrial's financial advisers. Morrison & Foerster and Alston & Bird served as the legal counsel on the transaction.