Prologis To Acquire About 14 Mln Sq. Ft. Of Blackstone Industrial Portfolio In $3.1 Bln Cash Deal

(RTTNews) - Prologis, Inc. (PLD) and Blackstone (BX) announced Monday a definitive agreement for Prologis to acquire nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for $3.1 billion in 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.

Prologis and Blackstone have completed more than a dozen transactions together in the past 11 years.

Prologis currently owns 1.2 billion square feet 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.