Prologis in talks for giant warehouse portfolio, after Blackstone’s monster deal

The purchase would add 38M sf acquisition, and comes a month after it was outbid for a 179M-sf industrial portfolio

TRD NATIONAL /
Jul.July 15, 2019 05:15 PM
Hamid Moghadam of Prologis and Dwight Merriman of Black Creek Group (Credit: iStock, Prologis and Black Creek Group via Twitter)

Hamid Moghadam of Prologis and Dwight Merriman of Black Creek Group (Credit: iStock, Prologis and Black Creek Group via Twitter)

Prologis is in advanced talks to acquire a $4 billion warehouse portfolio, a month after getting outbid by Blackstone in a far larger industrial deal.

Investors are increasingly drawn to warehouse properties, which attract major e-commerce firms, and are typically shielded from drastic market swings. In the fourth quarter of 2018, warehouse vacancy rates were at 7 percent, the lowest point since 2000, during the dot-com boom.

This portfolio, Industrial Property Trust, spans 37.6 million square feet across industrial properties in 21 states, and houses tenants including Amazon and FedEx, according to Bloomberg.

Black Creek Group listed the portfolio in February, and said it is 96 percent leased, with no occupant accounting for more than 3 percent of annual rents. The outlet reported the deal could be announced as early as this week.

San Francisco-based Prologis, which is one of the largest real estate investment trusts in the U.S. — and valued at $51 billion — has eyed multiple large-volume portfolios in recent years, with limited success. In April last year, it acquired DCT Industrial Trust Inc., a 21 million-square-foot warehouse portfolio, for $8 billion.

Last month, Blackstone outbid it for the U.S. operations of GLP, a Singapore based investment trust. Blackstone ended up paying $18 billion in a deal that amounted to one of the largest real estate transactions in history. [Bloomberg] — David Jeans


Related Articles

arrow_forward_ios
Prologis CEO Hamid Moghadam and Liberty Property Trust CEO Bill Hankowsky (Credit: Prologis, B.PHL, iStock)

Prologis to buy rival logistics firm for $13B

Prologis to buy rival logistics firm for $13B
Blackstone's Jonathan Gray (Credit: Getty Images and iStock)

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase
Nuveen CEO Vijay Advani, Blackstone President & COO Jonathan Gray and one of the Texas properties

Blackstone just sold off a 29M sf national industrial portfolio

Blackstone just sold off a 29M sf national industrial portfolio
Blackstone's Jonathan Gray (Credit: Getty Images and Wikipedia)

Blackstone buys Colony Capital’s warehouse portfolio for $6B

Blackstone buys Colony Capital’s warehouse portfolio for $6B
Blackstone CEO Stephen Schwarzman (Credit: Getty Images, iStock)

Blackstone is already selling pieces of the $18B GLP industrial portfolio

Blackstone is already selling pieces of the $18B GLP industrial portfolio
Blackstone turning its attention to European industrial real estate

Blackstone turning its attention to European industrial real estate

Blackstone turning its attention to European industrial real estate
Occupancy Sensors Can Serve as the Brains of an Office’s COVID-19 Response

Occupancy Sensors Can Serve as the Brains of an Office’s COVID-19 Response

Occupancy Sensors Can Serve as the Brains of an Office’s COVID-19 Response
Post-Pandemic Economic Development

Post-Pandemic Economic Development

Post-Pandemic Economic Development
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...