Prologis to Drop $3.1B on Blackstone Warehouse Portfolio
By Leah Breakstone June 26, 2023 2:31 pm
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Industrial powerhouse Prologis (PLD)’s portfolio will grow by approximately 14 million square feet after it agreed to pay Blackstone (BX) $3.1 billion for warehouses and distribution properties across the country, the companies announced Monday.
The cash deal allows Prologis to work toward its goals of expansion and growth, Dan Letter, president of Prologis, said in a press release. The Wall Street Journal first reported the sale.
Prologis currently owns 1.2 billion square feet of real estate in 19 countries. The sale will expand its presence in spots such as Atlanta, Dallas, Southern Florida and parts of California, among other areas.
In addition to growing its presence, the deal will expand Prologis’s relationship with 50 existing customers while adding 77 new customers, the company said in the release.
Industrial has boomed during the pandemic — thanks to supply chain issues and retailers ramping up efforts to deliver online orders quickly to consumers — and even amid some signs of cooling, the Prologis deal illustrates that demand for warehouses is still strong, Nadeem Meghji, head of Blackstone Real Estate Americas, said in a statement.
“With near record low vacancy, logistics remains a high conviction theme for us” Meghji said.
The transaction is expected to close by the end of June.
Leah Breakstone can be reached at lbreakstone@commercialobserver.com.
