Blackstone Inc announced on Monday an agreement to sell nearly 14 million square feet of warehouses and industrial properties to Prologis Inc for $3.1 billion in cash.
Prologis, a warehouse-focused real estate investment trust (REIT), stated that the acquisition price represents about “4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents.”
The deal will expand Prologis’ reach in key markets including Atlanta and parts of California, the companies said in a statement.
San Francisco-headquartered Prologis has been boosting its presence in the US, acquiring Duke Realty Corp for about $23 billion, including debt, in an all-stock transaction last year.
Prologis currently owns 1.2 billion square feet of logistics real estate in 19 countries, according to Reuters.
Prologis and Blackstone have completed more than a dozen transactions together in the past 11 years, the companies noted.
The acquisition is expected to close by the end of the second quarter this year.
Contact Sean at sean@proactiveinvestors.com