Plymouth REIT to Go Private in $2.1B Deal with Makarora, Ares
Shareholders to receive $22.00 per share in an all-cash transaction, representing a nearly 50% premium over the REIT's unaffected stock price.
Plymouth Industrial REIT Inc. (NYSE: PLYM) has entered into a definitive agreement to be acquired by affiliates of Makarora Management and funds from Ares Alternative Credit in an all-cash deal valued at approximately $2.1 billion, including the assumption of debt.
The Boston-based real estate investment trust, which specializes in industrial properties, announced Friday that its shareholders will receive $22.00 for each share of common stock. The offer represents a substantial premium of nearly 50% to Plymouth's unaffected closing stock price on August 18, 2025. Shares of Plymouth surged in morning trading to hover just above the offer price, closing in on the company's 52-week high of $22.60.
"This all-cash transaction will deliver significant, immediate and certain value to Plymouth shareholders," said Jeff Witherell, Chief Executive Officer and Co-Founder of Plymouth, in a statement released by the company. The transaction was unanimously approved by Plymouth's Board of Directors.
The deal underscores the continued private equity appetite for industrial real estate, a sector that has benefited from strong demand driven by e-commerce and supply chain reconfiguration. Plymouth's portfolio consists of warehouses and light manufacturing facilities located primarily in the Midwest and East Coast.
Chad Pike, Founder and Chief Investment Officer of Makarora, highlighted the strategic value of Plymouth's assets. “Plymouth’s portfolio of cost-competitive industrial assets in the Midwest and East Coast is strategically located within a day’s drive of 70% of the U.S. population," Pike noted. "These properties are well positioned to capitalize on strong industrial demand from these major population centers.”
While the premium is significant, the $22.00 per share offer comes two months after a higher, unsolicited proposal was made public. In August, Sixth Street Partners proposed acquiring Plymouth for $24.10 per share, a development that prompted some analysts to re-evaluate the company's valuation. At the time, Citizens JMP downgraded the stock, citing that the Sixth Street bid fairly valued the company.
The current agreement with Makarora and Ares includes a 30-day “go-shop” period, which expires on November 23, 2025. This provision allows Plymouth and its advisors to actively solicit and consider alternative acquisition proposals, leaving the door open for a potentially higher bid to emerge.
Prior to the announcement, Plymouth had a market capitalization of just under $1 billion. The company manages a diverse portfolio of industrial properties, and like many REITs, offers investors exposure to real estate income and a dividend yield, which stood at approximately 4.34%.
The acquisition is expected to close in early 2026, contingent upon approval by Plymouth's shareholders and the satisfaction of customary regulatory closing conditions. Upon completion of the transaction, Plymouth will become a privately held company and its shares will no longer be traded on the New York Stock Exchange.