(Reuters) – Prologis Inc (PLD.N) said on Monday it has agreed to buy 14 million square feet of industrial properties from real estate funds affiliated with Blackstone (BX.N) for $3.1 billion in an all-cash deal.
The acquisition price represents about “4% cap rate in the first year and a 5.75% cap rate when adjusting to today’s market rents”, the warehouse-focused real estate investment trust (REIT) said in a statement.
This deal expands Prologis’ presence to Atlanta, Washington DC, California, Dallas, Las Vegas, New York regions, Phoenix and South Florida, and its relationship with 50 existing customers and adds 77 new customers.
The company plans to hold all of the properties acquired. It currently owns 1.2 billion square feet of logistics real estate in 19 countries.
“This transaction demonstrates the exceptional demand for high-quality warehouses. With near record-low vacancy, logistics remains a high conviction theme for us,” Nadeem Meghji, head of Blackstone Real Estate Americas, said.
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Source: www.reuters.com
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