Real estate investment trust, Prologis (NYSE: PLD) announced on Monday that it will acquire around 14 million square feet of industrial properties from real estate funds affiliated with Blackstone (BX) for $3.1 billion in cash. The company stated in its press release that this “acquisition price represents around a 4% cap rate in the first year and a 5.75% cap rate when adjusting to today’s market rents.”
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The acquisition is expected to close by the end of the second quarter. Dan Letter, President, Prologis commented, “These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth. The acquisition demonstrates our unique ability to add significant scale to our portfolio – expanding customer relationships and increasing opportunities for our growing Essentials platform.”
Analysts are bullish about PLD stock with a Strong Buy consensus rating based on 15 Buys and two Holds.
