Prologis to acquire 14M square feet of Blackstone properties for $3.1B

Prologis (PLD) and Blackstone (BX) announced a definitive agreement for Prologis to acquire nearly 14M square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for $3.1B, funded by 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. “We’re pleased to be working with Blackstone on this deal. These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth,” said Dan Letter, president, Prologis. “The acquisition demonstrates our unique ability to add significant scale to our portfolio – expanding customer relationships and increasing opportunities for our growing Essentials platform.” Prologis currently owns 1.2 billion square feet of logistics real estate in 19 countries. The transaction is currently expected to close by the end of the second quarter.