Stock Markets February 2, 2026

Peakstone Realty Trust to Be Taken Private by Brookfield; Shares Jump 33%

Brookfield fund offers $21 per share in cash for industrial-focused REIT after Peakstone completed office divestiture

By Maya Rios PKST BAM
Peakstone Realty Trust to Be Taken Private by Brookfield; Shares Jump 33%
PKST BAM

Peakstone Realty Trust agreed to be acquired by a private real estate fund managed by Brookfield Asset Management for $21.00 per share in cash, a deal that sent Peakstone shares up 33% in Monday trading. The all-cash offer values the industrial-focused REIT at about $1.2 billion in enterprise value and includes a 30-day go-shop period. The transaction, unanimously approved by Peakstone's Board, is expected to close by the end of the second quarter of 2026, subject to shareholder approval and customary closing conditions.

Key Points

  • Brookfield-managed private real estate fund agreed to acquire Peakstone for $21.00 per share in cash, valuing the company at about $1.2 billion in enterprise value - impacts the industrial real estate and M&A markets.
  • The offer represents a 34% premium to Peakstone's Jan. 30, 2026 closing price, and premiums of 46% and 51% to the 30-day and 90-day VWAPs respectively - significant for REIT investors and equity markets.
  • Peakstone completed a strategic shift to an industrial-only portfolio in December 2025 and currently owns 76 industrial properties, including 60 industrial outdoor storage sites and 16 traditional industrial properties - affects industrial real estate sector and property markets.

Peakstone Realty Trust (NYSE:PKST) said Monday it has entered into a definitive agreement to be acquired by a private real estate fund managed by Brookfield Asset Management (NYSE:BAM) for $21.00 per share in cash. The announcement sent Peakstone common stock up 33% on the day.

The all-cash transaction places an approximate enterprise value of $1.2 billion on the industrial real estate investment trust. The purchase price represents a 34% premium to Peakstone's closing share price on January 30, 2026, a 46% premium to the company’s 30-day volume weighted average price, and a 51% premium to its 90-day VWAP.

The deal comes after Peakstone finalized a strategic shift to focus exclusively on industrial assets in December 2025, when it completed the divestiture of its office portfolio. As of the announcement, Peakstone's holdings comprise 76 industrial properties, made up of 60 industrial outdoor storage properties and 16 traditional industrial properties.

Commenting on the agreement, Michael Escalante, Chief Executive Officer of Peakstone, said, "We are pleased to enter into this agreement with Brookfield, which will deliver significant value to Peakstone shareholders. Following an offer from Brookfield, our Board of Trustees evaluated the proposed transaction with the assistance of external advisors and determined that it achieves the best value and other terms reasonably available for shareholders and is in the best interests of the Company."

Peakstone's Board of Trustees unanimously approved the transaction. The agreement includes a 30-day go-shop period that expires on March 4, 2026, during which the company may solicit alternative acquisition proposals. As part of the deal terms, Peakstone has agreed to suspend its regular quarterly dividend until the transaction closes or the agreement terminates.

The companies said the acquisition is expected to close by the end of the second quarter of 2026, subject to approval by Peakstone shareholders and the satisfaction of customary closing conditions. Upon completion, Peakstone will become a privately-held company and its shares will no longer trade on the New York Stock Exchange.

The transaction underscores a continued interest from large private funds in industrial real estate, and it follows Peakstone's recent repositioning away from office assets. The combination of a substantial cash premium and the transition to private ownership will change liquidity and income dynamics for existing shareholders, at least until the deal is finalized or an alternative bidder emerges.

Risks

  • A 30-day go-shop period ending March 4, 2026 could produce competing proposals that alter or replace the current transaction - introduces uncertainty for shareholders and the M&A market.
  • The acquisition requires shareholder approval and satisfaction of customary closing conditions; failure to obtain these approvals could prevent the deal from closing - a risk for Peakstone investors and market participants.
  • Peakstone has suspended its regular quarterly dividend until the transaction closes or the agreement terminates, which affects income-oriented shareholders and could influence short-term investor returns.

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