Industrial property. Picture by valtron84/iStockphoto.com
Prologis has entered right into a definitive settlement to accumulate 14 million sq. ft of commercial belongings from actual property funds affiliated with Blackstone for $3.1 billion, in an all-cash transaction, as first reported by The Wall Avenue Journal. The transaction is predicted to shut by the top of the second quarter.
The properties are in main markets similar to Atlanta, Baltimore, Washington, D.C., California, Phoenix, Las Vegas, New York and South Florida. The portfolio consists of some 70 belongings, as reported by The WSJ, all of which the client plans to carry. This provides 77 new prospects to Prologis’ portfolio, in addition to expands the agency’s relationships with 50 current ones.
Prologis President Dan Letter acknowledged in ready remarks that the deal is properly inside the firm’s long-term progress technique and that it demonstrates scalability. This acquisition represents one among greater than a dozen offers between the 2 corporations over the previous 11 years.
Industrial belongings as market outliers
Head of Blackstone for the Americas Nadeem Meghji talked about that the transaction reveals the extraordinarily excessive demand for high-quality warehouse area within the present financial atmosphere. As of April, the nationwide common industrial lease hit $7.18 per sq. foot, marking a 7.3 p.c year-over-year enhance, a current CommercialEdge report reveals. Despite rising rates of interest and falling gross sales volumes, costs continued to develop, in keeping with the identical supply. Within the first 4 months of the yr, $12.6 billion price of commercial belongings modified fingers.
The workforce that served Blackstone as monetary advisor included Eastdil Secured, Barclays, BofA Securities, Citigroup International Markets Inc., Deutsche Financial institution Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PJT Companions and Wells Fargo. Thacher & Bartlett LLP served as authorized advisors.
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