Brookfield Asset Management has agreed to buy U.K.-based logistics real estate investment firm Tritax EuroBox for £1.1B in cash and debt.

Toronto-based Brookfield is attempting to complete the acquisition through a new subsidiary created for that purpose. The subsidiary and Tritax’s boards announced the agreement in a news release issued by the London Stock Exchange. Although Tritax is headquartered in London, most of the firm’s assets are located on the European continent.

The Tritax portfolio spans 1.5 million square feet, according to New York-based global law firm Kirkland & Ellis, which is advising the Brookfield subsidiary.

The agreement resulted after Tritax’s board decided to withdraw its support of a previously accepted all-stock offer from British logistics firm Segro.

“A cash offer from Brookfield would provide increased certainty for Tritax EuroBox shareholders as compared to continued market risk between now and completion for the Segro offer,” Tritax’s board said in a separate news release.

Tritax accepted Brookfield’s offer of 69 pence per share in cash while rejecting Segro’s all-stock offer valued at 68.4 pence per share.

If all goes according to plan, Brookfield will pay £557 million in cash while assuming Tritax’s outstanding debt. The deal is slated to be completed as part of a “scheme of arrangement,” the British equivalent of a North American plan of arrangement.

Labels aside, such an arrangement provides financially struggling firms with protection from creditors and bankruptcy during a restructuring process. As with a plan of arrangement, Brookfield’s acquisition will require court approval before it can be completed.

Segro may choose to submit a revised offer for consideration in the meantime. Acknowledging the rival bid, Segro said it will make a further announcement “if appropriate.”

Photo: Tritax EuroBox