Blackstone has signed a definitive settlement with Prologis to promote its almost 14 million sq. toes of commercial properties from its affiliated opportunistic actual property funds for $3.1 billion. The acquisition worth represents an roughly 4% cap fee within the first 12 months and a 5.75% cap fee when adjusting to as we speak’s market rents, in line with the businesses. Prologis is paying money for the belongings.
Blackstone stays dedicated to the logistics asset class, with Nadeem Meghji, head of Blackstone Actual Property Americas, calling it a “excessive conviction theme for us,” in ready remarks. He notes that the personal fairness big owns $100 billion of warehouses in North America and $175 billion in complete world wide.
Prologis and Blackstone have accomplished greater than a dozen transactions collectively previously 11 years.
Prologis at present owns 1.2 billion sq. toes of logistics actual property in 19 nations. This acquisition expands the corporate’s presence in key markets, together with Atlanta, Baltimore/Washington DC, California (Southern California, Central Valley, SF Bay Space), Dallas, Las Vegas, New York/New Jersey, Phoenix and South Florida. The corporate plans to carry the entire properties acquired. This deal expands Prologis’ relationship with 50 present prospects and provides 77 new prospects.
The transaction is at present anticipated to shut by the tip of the second quarter.
Eastdil Secured, Barclays, BofA Securities, Citigroup World 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 acted as monetary advisors to Blackstone, and Simpson Thacher & Bartlett LLP acted as authorized advisor.
