Brookfield Asset Management has announced it is in the early stages of evaluating a potential bid for the London-listed real estate investment trust (REIT), Tritax EuroBox. The Canadian firm, chaired by former Bank of England governor Mark Carney, has until 5pm on 1 July to make a firm offer or withdraw.

Tritax EuroBox, which owns distribution centres across Germany, Sweden, and the Netherlands, stated that it has not yet received a proposal from Brookfield and that there is no certainty a bid will be made. The company advised its shareholders to take no action and promised to make further announcements as necessary.

This potential move by Brookfield comes during a period of increased merger and acquisition activity among UK-based REITs. Last month, Tritax EuroBox completed a £924 million takeover of UK Commercial Property REIT, expanding its portfolio to include warehouses, shopping centres, and office buildings.

Other notable transactions in the sector include LondonMetric’s £1.9 billion acquisition of LXi, which owns interests in Thorpe Park, Alton Towers, hotels, and industrial parks. Additionally, Abrdn Property Income’s attempted merger with Custodian Property Income REIT failed to gain sufficient shareholder approval.

The REIT market has faced challenges in recent years due to higher interest rates affecting real estate values and the shift towards remote working reducing demand for office space. Tritax EuroBox is currently trading at a 21.2 per cent discount to its net asset value, compared to an average discount of 26.1 per cent among its European peers, according to the Association of Investment Companies.

Peel Hunt analysts commented that Brookfield’s potential cash offer for Tritax is a positive sign of liquidity returning to the markets, which should benefit pricing. On Tuesday afternoon, Tritax EuroBox shares rose by 1.3 per cent to 164.3p, though they have shown little movement over the past year.