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  5. WIR.UN: WPT Industrial REIT was bought by Blackstone on Oct 22, and I was surprised to see the breakdown of purchase details. [WPT Industrial Real Estate Investment Trust]
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Investment Q&A

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Q: WPT Industrial REIT was bought by Blackstone on Oct 22, and I was surprised to see the breakdown of purchase details. Of the $22.00 purchase price, approx 19% was paid as disposition price and 81% as a giant dividend. This seems very unusual and costs the holder a chunk of money reflecting difference between dividend and cap gain taxation. I must say this seems unfair. Any comments?

Asked by richard on October 27, 2021
5i Research Answer:

With other deals, it has not been that unusual. The tax treatment stems from the operating business of the company and the structure of the deal. We are not tax experts, but while not ideal the companies simply had to follow the rules of law and accounting here, and did nothing 'wrong'.