SAN
FRANCISCO and NEW
YORK, June 26, 2023 /PRNewswire/ -- Prologis,
Inc. (NYSE: PLD) and Blackstone (NYSE: BX) today announced 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, 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."
Nadeem Meghji, head of Blackstone
Real Estate Americas, said, "Where you invest matters, and this
transaction demonstrates the exceptional demand for high-quality
warehouses. With near record low vacancy, logistics remains a high
conviction theme for us; we are proud owners of $100 billion of warehouses in North America and $175
billion in total around the world. And, of course, Prologis
is a world-class company that knows this space as well as
anyone."
Prologis and Blackstone have completed more than a dozen
transactions together in the past 11 years. Leadership at each
company values the relationship and the opportunities it creates to
execute on their respective strategies across markets and
cycles.
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.
Eastdil Secured, Barclays, BofA Securities, Citigroup Global
Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs &
Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC,
PJT Partners and Wells Fargo acted as financial advisors to
Blackstone, and Simpson Thacher & Bartlett LLP acted as legal
advisor.
About Prologis
Prologis, Inc. is the global leader in
logistics real estate with a focus on high-barrier, high-growth
markets. At March 31, 2023, the
company owned or had investments in, on a wholly owned basis or
through co-investment ventures, properties and development projects
expected to total approximately 1.2 billion square feet (113
million square meters) in 19 countries. Prologis leases modern
logistics facilities to a diverse base of approximately 6,600
customers principally across two major categories:
business-to-business and retail/online fulfillment.
About Blackstone Real Estate
Blackstone is a global
leader in real estate investing. Blackstone's real estate business
was founded in 1991 and has US $332
billion of investor capital under management. Blackstone is
the largest owner of commercial real estate globally, owning and
operating assets across every major geography and sector, including
logistics, residential, office, hospitality and retail. Our
opportunistic funds seek to acquire undermanaged, well-located
assets across the world. Blackstone's Core+ business invests in
substantially stabilized real estate assets globally, through both
institutional strategies and strategies tailored for income-focused
individual investors including Blackstone Real Estate Income Trust,
Inc. (BREIT), a U.S. non-listed REIT, and Blackstone's European
yield-oriented strategy. Blackstone Real Estate also operates one
of the leading global real estate debt businesses, providing
comprehensive financing solutions across the capital structure and
risk spectrum, including management of Blackstone Mortgage Trust
(NYSE: BXMT).
Forward-Looking Statements
The statements in this
document that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements are based on
current expectations, estimates and projections about the industry
and markets in which we operate as well as management's beliefs and
assumptions. Such statements involve uncertainties that could
significantly impact our financial results. Words such as "expects"
"anticipates," "intends," "plans," "believes," "seeks," and
"estimates" including variations of such words and similar
expressions are intended to identify such forward-looking
statements, which generally are not historical in nature. All
statements that address operating performance, events or
developments that we expect or anticipate will occur in the
future—including statements relating to rent and occupancy growth,
acquisition and development activity, contribution and disposition
activity, general conditions in the geographic areas where we
operate, our debt, capital structure and financial position, our
ability to earn revenues from co-investment ventures, form new
co-investment ventures and the availability of capital in existing
or new co-investment ventures—are forward-looking statements. These
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to
predict. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we
can give no assurance that our expectations will be attained and,
therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements.
Some of the factors that may affect outcomes and results include,
but are not limited to: (i) international, national, regional and
local economic and political climates and conditions; (ii) changes
in global financial markets, interest rates and foreign currency
exchange rates; (iii) increased or unanticipated competition for
our properties; (iv) risks associated with acquisitions,
dispositions and development of properties, including the
integration of the operations of significant real estate
portfolios; (v) maintenance of Real Estate Investment Trust status,
tax structuring and changes in income tax laws and rates; (vi)
availability of financing and capital, the levels of debt that we
maintain and our credit ratings; (vii) risks related to our
investments in our co-investment ventures, including our ability to
establish new co-investment ventures; (viii) risks of doing
business internationally, including currency risks; (ix)
environmental uncertainties, including risks of natural disasters;
(x) risks related to global pandemics; and (xi) those additional
factors discussed in reports filed with the Securities and Exchange
Commission by us under the heading "Risk Factors." We undertake no
duty to update any forward-looking statements appearing in this
document except as may be required by law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/prologis-to-acquire-14msf-blackstone-industrial-portfolio-in-3-1-billion-deal-301862756.html
SOURCE Prologis, Inc.