New York, February 2, 2026, 10:11 a.m. ET — Regular session
- PKST shares surged in early trading following Brookfield’s agreement to buy the company for $21 per share in cash
- The offer values the enterprise at roughly $1.2 billion, factoring in debt.
- The go-shop period lasts until March 4, with Peakstone halting its regular dividend during the pending deal.
Shares of Peakstone Realty Trust (PKST) surged roughly 33% to $20.72 Monday morning following an announcement that Brookfield Asset Management plans to acquire the industrial REIT for $21 per share in cash. The deal puts Peakstone’s enterprise value at about $1.2 billion, factoring in both debt and equity. Brookfield’s stock showed little movement on the news. (Reuters)
Investors are drawn by one clear factor: immediate cash, locked in at a set price, in a market where prices often swing with interest-rate shifts. It also signals that major private buyers remain ready to back property platforms—provided the deal terms make sense.
The target zeroes in on industrial outdoor storage, or IOS — basically open-air lots for trailers, equipment, and bulky materials — alongside classic warehouse locations. It’s a niche that draws plenty of attention but leaves little margin for error when it comes to site selection.
Peakstone CEO Michael Escalante said in a press release the deal “will deliver significant value to Peakstone shareholders” after the board consulted outside advisers on Brookfield’s offer. Lowell Baron, head of Brookfield’s real estate division, described the transaction as “an opportunity to expand” its industrial platform, highlighting “strong long-term fundamentals” in warehouses and IOS. Brookfield’s private real estate fund will acquire all shares at a 34% premium to Peakstone’s Jan. 30 closing price, and premiums of 46% and 51% over its 30- and 90-day volume-weighted average prices (VWAPs), respectively. Peakstone said it completed the sale of its remaining office properties in December and currently holds 76 industrial assets. The deal is advised by BofA Securities and Latham & Watkins for Peakstone, with Citigroup Global Markets and Gibson, Dunn & Crutcher representing Brookfield.
According to a U.S. Securities and Exchange Commission filing, Peakstone has a 30-day “go-shop” period to hunt for a better offer, ending at 11:59 p.m. New York time on March 4. Should Peakstone pull out early for a superior bid, it would owe Brookfield a $16 million termination fee. In other cases, that fee rises to $34 million, the filing revealed. The deal’s outside date is set for Aug. 2, 2026, and includes a $122 million reverse termination fee if the buyer doesn’t close under certain conditions. The filing also notes Brookfield’s committed debt and equity financing, and that Peakstone cannot pay its usual quarterly dividend while the deal is active.
The go-shop is key—it’s the only clear “but” in a cash deal. It might lure a rival or prove Brookfield is the final bidder. Traders are watching the spread between PKST and $21 closely.
The dividend pause adds another layer of complexity. REITs — real estate investment trusts that usually distribute most of their taxable income to shareholders — often attract investors based on yield as much as asset value. This move, however, freezes the yield question in place.
PKST surged amid a quiet start for U.S. stocks, which edged down as metals prices plunged. The week ahead is heavy with earnings reports and key economic figures, rattling investor nerves early on. (Reuters)
Merger-arb spreads can quickly widen if financing markets tighten, a competing bid delays the timeline, or closing conditions become contentious. Should the deal collapse, PKST could slide back to pre-offer levels.
Coming next: the March 4 go-shop deadline, followed by Peakstone’s proxy filing and a shareholder vote. The companies are targeting a close by the end of Q2.
