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

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

Blackstone's Jonathan Gray (Credit: Getty Images and iStock)

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's Jonathan Gray (Credit: Getty Images and Wikipedia)

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 turning its attention to European industrial real estate

Compass' Robert Reffkin and Avi Dorfman (Credit: Facebook, iStock)

Compass doesn’t want a jury trial in the Avi Dorfman case

From left: WeWork co-CEOs Sebastian Gunningham and Artie Minson with Softbank CEO Masayoshi Son (Credit: Getty Images, iStock)

SoftBank rescue plan would bring WeWork’s valuation to $8B

Bank OZK CEO George Gleason (Credit: Bank OZK, iStock)

Bank OZK reports uptick in construction lending in Q3