Blackstone’s Strategic Acquisition Boosting U.S. E-Commerce Warehousing
In a significant move to address the burgeoning demand for e-commerce warehouse functionality in the United States, Blackstone Real Estate has forged an agreement to procure assets from three of GLP’s domestic funds, a transaction valued at a staggering $18.7 billion.
This acquisition encompasses an impressive 179 million square feet of urban logistics real estate, effectively nearly doubling Blackstone’s existing industrial portfolio in the U.S.
This compilation integrates 316 industrial properties strategically located in key markets, including Dallas/Fort Worth, Chicago, Central Pennsylvania, Atlanta, and Central Florida, as outlined in the firm’s submission to the Securities and Exchange Commission.
“Logistics represents our foremost conviction in global investment themes today, and we eagerly anticipate expanding our portfolio to cater to the escalating e-commerce demand,” stated Ken Caplan, global co-head of Blackstone Real Estate.
Under the umbrella of Blackstone Real Estate Partners (BREP), the global fund will procure **115 million square feet** for **$13.4 billion**, while its income-focused, non-listed REIT, Blackstone Real Estate Income Trust (BREIT), will secure **64 million square feet** for **$5.3 billion**.
“These properties serve as a synergistic enhancement to our stabilized commercial real estate portfolio, which is aligned with our strongest investment themes, particularly logistics,” remarked Frank Cohen, chairman and CEO of BREIT.
A recent survey conducted by DHL reveals that **65 percent** of participants acknowledged the remarkable growth trajectory of e-commerce and its consequential effects on supply chains.
According to a new report from CBRE, the availability rate for U.S. industrial real estate witnessed a marginal decline of less than half a basis point, effectively flatlining in the first quarter, with warehouse demand closely matching the influx of newly constructed supply.
This modest downturn signifies thirty-five consecutive quarters of dwindling availability—the longest streak since CBRE initiated its data tracking in 1988.
The availability of U.S. industrial real estate has now stooped to **7 percent** in the first quarter, marking the lowest level since the year 2000. Over the past year, the availability rate has decreased by **30 basis points**.
Richard Barkham, CBRE’s global chief economist, noted that the industrial and logistics real estate sector continues to flourish amidst an ongoing structural transition toward e-commerce, bolstered by healthy consumer spending levels.
GLP stands as a global investment manager overseeing **$64 billion** in assets across real estate and private equity funds.
Having forayed into the U.S. real estate landscape in 2015, GLP ascended to become the second-largest proprietor of logistics real estate assets nationwide through prudent acquisitions of top-tier, modern logistics facilities spanning **36 pivotal markets**.
Notably, GLP intends to maintain its stake in the U.S. across real estate, technology, and credit, affirming its long-term commitment to this market.
Meanwhile, Blackstone’s real estate division commands approximately **$140 billion** in investor capital under management and operates internationally across North America, Europe, Asia, and Latin America.
Today, Blackstone stands as a preeminent owner of logistics assets with a robust presence in North America, Europe, and Asia.
Source link: Wwd.com.
