Prologis $3.1 billion to add nearly 14 million square feet of warehouse space

Logistics real estate firm Prologis Inc. will acquire nearly 14 million square feet of industrial properties from “opportunistic real estate funds” affiliated with the private equity firm Blackstone for $3.1 billion.

According to Blackstone, the deal shows enduring demand for logistics real estate in a post-pandemic economy. “This transaction demonstrates the exceptional demand for high-quality warehouses. With near record low vacancy, logistics remains a high conviction theme for us; we are proud owners of $100 billion of warehouses in North America and $175 billion in total around the world. And, of course, Prologis is a world-class company that knows this space as well as anyone," Nadeem Meghji, head of Blackstone Real Estate Americas, said in a release.

Prologis currently owns 1.2 billion square feet of logistics real estate in 19 countries. This acquisition expands the company's presence in key markets, including Atlanta, Baltimore/Washington DC, California (Southern California, Central Valley, SF Bay Area), Dallas, Las Vegas, New York/New Jersey, Phoenix, and South Florida. 

Prologis plans to hold all of the properties acquired. This deal expands the company’s relationship with 50 existing customers and adds 77 new customers.

According to Prologis, the deal also strengthens its carbon emissions reduction plan, which it calls its “Essentials” program. “These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth," Dan Letter, president of Prologis, said in a release. "The acquisition demonstrates our unique ability to add significant scale to our portfolio—expanding customer relationships and increasing opportunities for our growing Essentials platform."