Blackstone has agreed to sell 14 million square feet of industrial properties to Prologis Inc. for $3.1 billion in cash. The acquisition marks a strategic move by Prologis to expand its presence in multiple regions across the United States, including Atlanta, Washington, D.C., California, Dallas, Las Vegas, New York, Phoenix, and South Florida.
The agreement not only allows Prologis to strengthen its relationships with 50 existing clients but also adds 77 new clients to its portfolio. Prologis, a global leader in logistics real estate, has plans to retain all the acquired properties, seamlessly integrating them into its existing portfolio, which already encompasses an impressive 1.2 billion square feet of logistics real estate spread across 19 nations.
This latest transaction between Prologis and Blackstone comes as no surprise, as the two real estate giants have a history of successful collaborations over the past eleven years. The deal underscores the robust demand for high-quality warehouses, a trend that has gained significant traction in recent years.
The closing of the transaction is expected to take place by the end of the second quarter, signaling a swift execution of the agreement. Blackstone, the seller in this deal, received financial advisory support from a number of renowned firms, including Eastdil Secured, Barclays, BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs, J.P.Morgan Securities, Morgan Stanley, PJT Partners, and Wells Fargo.