Blackstone ups offer to $666 million in battle for UK's Warehouse REIT

(Reuters) -U.S. private equity firm Blackstone on Thursday raised its offer for Warehouse REIT to about 489 million pounds ($666 million), topping an agreed deal for the London-listed company from industry peer Tritax Big Box REIT.

U.S.-based companies have been snapping up British assets recently, taking advantage of weaker UK valuations. UK-listed real estate investment trusts have also seen a flurry of deals as players look to bulk up in an uncertain economic backdrop.

Blackstone said its new offer valued Warehouse REIT shares at 115 pence apiece, an 8.3% premium to their closing price on June 3, the day before Blackstone disclosed its initial bid of 110.6 pence per share.

The new offer comprises 113.4 pence per share in cash and a dividend of 1.6 pence per share, Blackstone said in a statement.

Warehouse REIT shares were up 2.8% at 1009 GMT, a little above the offer price, suggesting some investors think the bid battle could have further to run.

Warehouse REIT last month accepted a cash-and-stock offer from Tritax Big Box REIT that valued it at about 114.2 pence per share, or 485.2 million pounds.

Asked whether the company would continue to support Tritax's proposal, Warehouse REIT declined to comment.

Tritax did not immediately respond to a request for comment.

Blackstone has said it wants to add Warehouse REIT to its logistics portfolio, while Tritax has said the business is complementary to its own.

Other British companies at the centre of bid battles include scientific instruments maker Spectris and healthcare real estate investor Assura.

($1 = 0.7346 pounds)

(Reporting by Shashwat Awasthi and Yamini Kalia. Additional reporting by Raechel Thankam Job in Bengaluru. Editing by Tasim Zahid and Mark Potter)