Aug 27 (Reuters) - Britain's Warehouse REIT

said on Wednesday a buyout offer from peer Tritax Big Box REIT

was formally terminated after both parties chose not

to proceed with the proposal following a rival agreement.

Warehouse REIT, which has been the subject of a bidding war

for months, had recommended in July that shareholders accept a

roughly 489-million-pound offer from U.S. private equity group

Blackstone over Tritax's bid.

Blackstone has offered the logistics specialist 115 pence

per share amid growing overseas interest in UK assets, thanks to

Britain's muted valuations and relative market stability, which

are fuelling a wave of recent bids.

A regulatory auction process for Warehouse REIT ended last

week after Tritax said its 485.2-million-pound cash-and-stock

proposal was final and that it would not be increased, drawing a

line in the prolonged fight.

Warehouse REIT said on Wednesday Tritax had confirmed to it

that the company does not wish to exercise its right to present

an alternative takeover offer.

The formal termination of Tritax's pursuit means that it

will not be able to make any approach to Warehouse REIT for 12

months without regulatory consent.

The development also comes after Blackstone and its

affiliates increased their shareholding in Warehouse REIT last

week, making their offer a "recommended mandatory cash offer"

under British takeover rules.

As of August 26, Blackstone directly or indirectly owned or

had received undertakings of support for its offer through

shares representing roughly 34.33% of Warehouse REIT, the

British company said.

($1 = 0.7402 pounds)