Update: We’re in ping pong territory in the bid battle for after Blackstone yesterday trumped a rival offer from Tritax Big Box for the logistics fund, prompting its board this morning to swing its recommendation back to the US alts group.

Blackstone, which first approached Warehouse in March, has upped its cash offer to £489m or 113.4p per share. Including the 1.6p fourth quarter dividend, this lifts the total to 115p, 6p more than it offered over a month ago.

Warehouse says this is 3.5% more than the cash and share offer from , which won its recommendation on 25 June.

Based on Wednesday’s BBOX closing price, the Tritax offer for Warehouse was priced at 107.9p, its board says, or a total of 111.1p including the dividend.

The US alternative asset manager claimed its offer was superior as it allows investors to exit their stakes in full for cash. It urged them to accept the offer as soon as possible.

Today the independent directors of Warehouse agreed after saying they had “carefully evaluated” the offers. “The Increased Blackstone offer provides Warehouse REIT shareholders with a certain all-cash offer, at a premium to the BBOX offer, which comprises a mixed consideration of new BBOX shares and cash, and the Warehouse independent directors now switch their recommendation in favour of the Increased Blackstone offer accordingly.”

Some investors have backed the Tritax bid as it enables them to retain exposure to the recovery in the logistics market through a listed company.

To provide further certainty that its offer will ultimately prevail, Blackstone has gained Takeover Panel approval to structure the deal as a takeover as opposed to a scheme of arrangement. This requires 50% shareholder support rather than 75%.

Meanwhile, Blackstone has bought a 10.5% stake in Warehouse at the new offer price.

Warehouse shares gained 3p to 115.4p on Thursday, just above the offer. They have soared 37% this year as a result of the bid contest, sharply reducing their discount to net asset value to 12%, which suggests there is room for higher offers yet. BBOX shares closed broadly unchanged at 143p.