Boston’s Plymouth Industrial REIT has received a nonbinding offer for the firm to be acquired by its strategic partner, global investment firm Sixth Street Partners.
San Francisco-based Sixth Street offered to buy Plymouth for $24.10 per share in cash, representing a 65% premium over the industrial property owner’s Monday closing stock price of $14.65 per share. At those prices, Plymouth’s market capitalization would increase from about $652 million to $1.07 billion.
Plymouth’s board plans to evaluate the offer with its advisers to determine whether the deal serves shareholders’ interests, the publicly traded real estate investment trust said.
Sixth Street disclosed the unsolicited proposal on Monday in a regulatory filing. The company already owns 9.99% of Plymouth’s outstanding shares and manages over $115 billion in assets.
The buyout bid follows a strategic partnership the companies launched last summer. Plymouth’s stock has plunged 40% since announcing a $250 million Sixth Street investment, according to BMO Capital Markets analyst John Kim.
Kim cited “unnecessary complexity through the issuance of preferred equity and warrants, which could become immensely expensive.” Additional tenant vacancies and potential tariff headwinds have pressured shares, he said.
“We are uniquely positioned to pursue this transaction given our established relationship with Plymouth,” Marcos Alvarado, Sixth Street’s head of U.S. real estate, said in a letter attached to the filing.
“Through our existing investment in the company, we have developed a comprehensive, asset-by-asset understanding of the company’s portfolio from our original underwriting,” Alvarado added. “Our familiarity with the company enables us to underwrite this transaction with speed and efficiency.”
Industrial investments
The partnership was designed to accelerate earnings growth and expand Plymouth’s holdings in key industrial markets. Plymouth has actively deployed the capital, acquiring 2.9 million square feet of properties for more than $256 million, including a 23-property Ohio deal for $193 million.
The offer comes as U.S. real estate merger and acquisition activity involving publicly traded REITs was sluggish in 2025’s first half. High interest rates and increased debt costs have largely stalled transactions in the REIT sector, according to S&P Global Ratings.
National industrial property transactions also remain weak. Second-quarter volume held steady compared to 2024, but investor caution has grown as outgoing tenants have surpassed incoming tenants for the first time since 2010, according to CoStar analysis. Buyers have revisited underwriting assumptions amid broader macroeconomic uncertainty.
Sixth Street plans to finance the acquisition through cash and roughly $1.5 billion in new debt. Goldman Sachs provided a financing commitment letter, eliminating financing conditions.
Sixth Street requested an exclusivity period to complete due diligence and negotiate definitive agreements. The investment firm said it was open to a 30-day go-shop period, allowing Plymouth to consider competing offers.
As of June 30, Plymouth owned 226 industrial buildings totaling about 32.1 million square feet across multiple markets. The company also owns a regional property management office building in Columbus, Ohio.
Plymouth focuses on single and multitenant industrial properties in primary and secondary markets, providing tenants with functional and flexible warehouse space.