Tag Archive for: colony capital

The ink isnā€™t dry on Blackstone Groupā€™s $18 billion buy of a U.S. warehouse portfolio, and itā€™s already negotiating to sell part of it.

The company, which finished its transition into aĀ corporationĀ this month, is drumming up interest from potential buyers for pieces of the GLP Pte portfolio, Bloomberg reported. Prologis is in private discussions to buy one such portfolio, valued at $1 billion.

Blackstoneā€™sĀ $18.7 billionĀ deal for the Singaporean companyā€™s 179 million-square-foot warehouse portfolio is one of the largest industrial real estate deals ever.

Selling non-core or non-strategic pieces of a recently required purchase isnā€™t uncommon. Blackstone applied the same strategy in 2007 when it sold off parts of its $40 billion acquisition of Equity Office Properties Trust.

On the whole, the warehouse sector has seen little supply, high demand and high prices, with available industrial and logistics real estate rising slightly for the first time in 34 quarters, according to a CBRE report. Demand for warehouse and distribution reached anĀ 18-year high in 2018.

Large owners are optimistic that there will continue to be institutional investment in industrial real estate. As Prologis negotiates for a piece of Blackstoneā€™s new holdings, itā€™s also in advanced talks to buy anotherĀ $4 billion portfolioĀ from Black Creek Group which spans 37.6 million square feet.

Colony Capital is weighing the sale of itsĀ $5 billionĀ industrial in holdings on the heels of selling another warehouse portfolio for $104.6 million.


Source: The Real Deal