Prologis Inc and Blackstone Group LP have settled to acquire 17 million square feet of distribution centers and warehouses for an estimated US$960 million. This was related on Wednesday by two reliable sources who are knowledgeable of the transaction. Based on the agreement, IndCor Properties Inc, a unit of Blackstone will be managing the operations of the 9.5 million square feet of properties situated in Reno, Nevada. On the other hand, the sources added that Prologis will acquire the residual properties that are mainly situated in Pennsylvania and the others in Las Vegas.
Blackstone already has a portfolio of around 100 million square feet of distribution centers and warehouses which were acquired through a number of transactions that started back in 2010, making them one of the top three industrial real estate owners in the country. All the portfolio distribution centers and warehouses of Blackstone are administered under IndCor.In the last three years, Blackstone has acquired other distribution centers and warehouses. In 2012, it acquired 65 U.S. properties that were owned by Dexus Property Group of Australia for US$770 million. When Blackstone bought the debt on the portfolio of Walton Street Capital LLC, included in the deal was the control of an estimated 95 distribution centers and warehouses.
The sources of the information requested for anonymity since the transaction is still in the process.
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