Brixton agrees £109m sale to close rival Segro

No private equity white knight for heavily indebted Brixton as it falls into the arms of larger industrial UK REIT, Segro.

The board of heavily-indebted UK industrial REIT, Brixton, has agreed to a takeover by larger rival Segro in a deal which would create the biggest public European industrial property specialist.

The announcement this morning means there is no white knight for Brixton, though several private equity real estate firms have been linked with the company in recent weeks, MGPA and The Blackstone Group being the most notable among them.

Private equity firms, however, have taken advantage of Brixton’s weak balance sheet.

Earlier in the year Parris-based AEW Europe and New York’s Westbrook Partners  purchased property portfolios from the company, which has run into trouble by piling on too much debt.

In a statement to the London stock exchange today, Brixton said the combined group would have a £5.5 billion (€6.3 billion; $8.9 billion) property portfolio.