2023-06-26 08:57:09 ET
- Prologis ( NYSE: PLD ) agreed to acquire almost 14M square feet of industrial properties from funds affiliated with Blackstone ( NYSE: BX ) for $3.1B in cash, the companies said Monday.
- The acquisition price represents ~4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents. The two companies have completed more than a dozen transactions in the past 11 years.
- Prologis ( PLD ) owns 1.2B square feet of logistics real estate in 19 countries. This latest acquisition expands the company's presence in key markets, including Atlanta, Baltimore/Washington, DC; California; Dallas; Las Vegas; New York/New Jersey; Phoenix; and South Florida.
- The transaction is currently expected to close by the end of Q2.
- Blackstone ( BX ) said logistics remains a "high-conviction theme" for the firm as it owns $100B of warehouses in North America and $175B it total around the world.
- In April, Prologis ( PLD ) raised its 2023 guidance midpoint as demand stays healthy.
For further details see:
Prologis to buy industrial properties from Blackstone for $3.1B