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 properties in the portfolio.
“These high-quality properties are complementary to our portfolio and fit perfectly into our strategic long-term growth plan,” said Dan Letter, president of Prologis. “The acquisition demonstrates our unique ability to add significant scale to our portfolio.”
Nadeem Meghji, head of Blackstone Real Estate Americas, said: “Where you invest matters, and this transaction demonstrates the exceptional demand for high-quality warehouses. With vacancy at near-record highs, logistics remains a topic of high conviction for to us; we are proud owners of $100 billion in warehouses in North America and $175 billion in total worldwide.”
Prologis and Blackstone have completed more than a dozen transactions together in the past 11 years. The acquisition expands Prologis’ presence in key markets including Atlanta, Baltimore/Washington DC, California, Dallas, Las Vegas, New York/New Jersey, Phoenix and South Florida. It also expands Prologis’ relationship with 50 existing customers and adds 77 new ones.
Eastdil Secured, Barclays, BofA Securities, Citigroup Global Markets Inc., Deutsche Bank Securities, Goldman Sachs, JP Morgan Securities, Morgan Stanley PJT Partners and Wells Fargo acted as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP acted as legal counsel.
