06:42 AM EDT, 10/27/2025 (MT Newswires) -- Plymouth Industrial REIT ( PLYM ) agreed to be acquired and taken private by entities affiliated with Makarora Management and Ares Alternative Credit funds in an all-cash deal worth about $2.1 billion, including certain debt.

Under the terms, the entities will pay $22 apiece for all Plymouth shares and limited partnership interests of Plymouth Industrial OP, the real estate investment company said late Friday. The transaction represents a 50% premium to Plymouth's closing share price on Aug. 18, the last trading day before the company announced that it received an unsolicited buyout proposal from affiliates of Sixth Street Partners for $24.10 a share.

Shares of Plymouth were down 1.5% in Monday's most recent premarket activity.

The Makarora deal, which is about 8.7% below Sixth Street's offer, "surprised" Truist Securities amid recent recovery in the industrial sector and Plymouth management indicating robust funds from operations growth in 2026 and improving occupancy as it exits 2025, the brokerage said in a Sunday client note.

"While we agree that as a small cap REIT with concentration in secondary and tertiary markets have limited its public market appeal, we had expected a takeout price at least in line with, if not above, the $24.10 per share level offered by Sixth Street -- potentially closer to $25.25," according to Truist.

The transaction, which requires approval from regulators and clearance from Plymouth's shareholders, is expected to complete early next year. Following completion, the company will no longer trade on the New York stock exchange.

"This all-cash transaction will deliver significant, immediate and certain value to Plymouth shareholders," Plymouth Chief Executive Jeff Witherell said in a statement.

The firm aims to conduct a 30-day "go-shop" period to actively solicit and consider potentially superior alternative acquisition proposals from other interested parties. Plymouth will be liable to pay a termination fee of $40.1 million if it accepts a superior offer, or $15 million for certain pre-existing bidders, according to a regulatory filing.

Plymouth said it doesn't plan to file its earnings release for the quarter ended Sept. 30 as a result of the deal. It aims to pay its previously announced third-quarter dividend on Oct. 31.

Plymouth's portfolio of "cost-competitive industrial assets" in the Midwest and East Coast is "well positioned to capitalize on strong industrial demand from these major population centers," Makarora Chief Investment Officer Chad Pike said in the statement. "Makarora is committed to providing flexible capital solutions to US real estate businesses, and we are excited to partner with the Plymouth team."