Prologis has acquired 1.3 million square meters of industrial real estate

Prologis, Inc. (NYSE: PLD) and Blackstone (NYSE: BX) have announced a definitive agreement for Prologis to acquire nearly 1.3 million square meters of industrial real estate from funds affiliated with Blackstone for $3.1 billion, financed with cash. The first-year annual yield will be 4%, and 5.75% when adjusted to current market rates.

“We are pleased to partner with Blackstone on this transaction. These high-quality properties complement our portfolio and fit perfectly into our long-term strategic growth plan. This transaction demonstrates Prologis' unique ability to grow its real estate portfolio at scale, expand customer relationships, and increase the capabilities of our growing Essentials platform,” said Dan Letter, President of Prologis.

“Where you invest matters, and this transaction demonstrates the exceptional demand for high-quality warehouses. With vacancy rates at near-record lows, logistics remains an important theme for us. We are proud owners of $100 billion in warehouses in North America and $175 billion globally. Of course, Prologis is a world-class company that knows this industry like no other,” said Nadeem Meghji, head of Blackstone Real Estate Americas.

Over the past 11 years, Prologis and Blackstone have completed a dozen transactions together. The leadership of each company values this relationship and the opportunities it creates to execute adopted strategies across different markets and economic cycles.

Prologis currently owns 113 million square meters of logistics real estate in 19 countries. The acquired properties increase the company's presence in key markets, including Atlanta, Baltimore/Washington, California (Southern California, Central Valley, SF Bay Area), Dallas, Las Vegas, New York/New Jersey, Phoenix, and South Florida. The company plans to retain all purchased properties. Through this transaction, Prologis expands its cooperation with 50 existing customers and establishes contacts with 77 new ones.