REAL ESTATE

Blackstone purchases warehouse network for $18.7B

BY Dan Berthiaume

Blackstone Real Estate is acquiring 179 million sq. ft. of industrial warehouse space from global investment management firm GLP.

The deal provides Blackstone with urban, infill logistics assets and nearly doubles the size of the company’s existing U.S. industrial footprint. Blackstone’s global opportunistic BREP strategy will acquire 115 million sq. ft. for $13.4 billion, and its income-oriented non-listed REIT, Blackstone Real Estate Income Trust (BREIT), will acquire 64 million sq. ft. for $5.3 billion.

Established in Singapore, GLP entered the U.S. real estate market in 2015.

“Logistics is our highest conviction global investment theme today, and we look forward to building on our existing portfolio to meet the growing e-commerce demand,” said Ken Caplan, global co-head of Blackstone Real Estate. “Our global scale and ability to leverage differentiated investment strategies allowed us to provide a one-stop solution for GLP’s high-quality portfolio.”

Alan Yang, chief investment officer of GLP, said, “GLP was able to leverage our deep operating expertise and global insights in the logistics sector within four years to build and grow an exceptional portfolio. We are looking forward to expanding our footprint in the U.S. to continue to seize key opportunities in the U.S. market.”

Frank Cohen, chairman and CEO of BREIT, said, “These properties are a complementary addition to our stabilized commercial real estate portfolio, which is oriented toward our highest conviction themes, such as logistics.”

Blackstone is executing this transaction as e-commerce and mobile commerce continue growing in popularity. According to the Wall Street Journal, this acquisition stands as the largest private real estate transaction in history. GLP’s largest warehouse tenant is Amazon.com.

Kirkland & Ellis served as legal counsel to GLP and Eastdil Secured LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC served as financial advisors to GLP. BofA Merrill Lynch, Barclays, Deutsche Bank, J.P. Morgan and Morgan Stanley & Co. LLC served as financial advisors to Blackstone. Citigroup Global Markets Inc., Eastdil Secured LLC and Goldman Sachs & Co. LLC served as Blackstone’s financing advisor. Simpson Thacher & Bartlett served as legal counsel to Blackstone.

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