Prologis has agreed to acquire nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for $3.1 billion in an all-cash deal. The San Francisco-based industrial REIT plans to hold all the properties in the portfolio, expanding its presence in key markets such as Atlanta, Baltimore/Washington DC, California, Dallas, Las Vegas, New York/New Jersey Phoenix and South Florida. This acquisition also expands Prologis’ relationship with 50 existing customers and adds 77 new ones.
Dan Letter President of Prologis commented on the transaction saying “These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth; demonstrating our unique ability to add significant scale” Nadeem Meghji Head of Blackstone Real Estate Americas added “Where you invest matters; this transaction demonstrates exceptional demand for high quality warehouses” noting that they own $100 billion worth of warehouses across North America alone totaling at a global value of $175 billion worldwide.
Eastdil Secured Barclays BofA Securities Citigroup Global Markets Inc Deutsche Bank Securities Goldman Sachs J P Morgan Securities Morgan Stanley PJT Partners Wells Fargo acted as financial advisors while Simpson Thacher & Bartlett LLP provided legal advice during this acquisition process by Prologis from Blackstone’s opportunistic real estate funds
