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6/27/23
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Prologis has reached an agreement to acquire nearly 14 msf of industrial properties from opportunistic real estate funds affiliated with Blackstone for $3.1 bil, funded by cash. The acquisition price represents an approximately 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents.
"These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth," said Dan Letter, president, Prologis. "The acquisition demonstrates our unique ability to add significant scale to our portfolio - expanding customer relationships and increasing opportunities for our growing Essentials platform."
Prologis and Blackstone have completed more than a dozen transactions together in the past 11 years. Prologis currently owns 1.2 bil sf of logistics real estate in 19 countries. This acquisition expands the company's presence in key markets, including Atlanta, Baltimore/Washington DC, California (Southern California, Central Valley, SF Bay Area), Dallas, Las Vegas, New York/New Jersey, Phoenix and South Florida.
The company plans to hold all of the properties acquired. This deal expands Prologis' relationship with 50 existing customers and adds 77 new customers.
The transaction is currently expected to close by the end of the second quarter.
Eastdil Secured, Barclays, BofA Securities, Citigroup Global Markets Inc, Deutsche Bank Securities Inc, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co LLC, PJT Partners and Wells Fargo acted as financial advisors to Blackstone, and Simpson Thacher & Bartlett LLP acted as legal advisor.
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