Two vehicles affiliated with Blackstone Real Estate have purchased 124 logistics assets from Cabot Properties for $2.8 billion in two separate transactions.
Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, purchased the U.S. portion of the portfolio, comprised of 102 properties totaling 15.2 million square feet and located in the Inland Empire, California; Eastern Pennsylvania; South Florida; and the New York Metropolitan Area.
As reported by The DI Wire in mid-October, Blackstone REIT disclosed plans to purchase an industrial portfolio from Cabot for $2.3 billion, consisting of 102 assets located in “established industrial markets” throughout the U.S.
In a separate transaction, Blackstone’s European Core+ business and its affiliates purchased the remaining 22 European properties. The properties total 2.2 million square feet of industrial space across multiple European markets including the Midlands, North West and South East in the U.K.; Amsterdam in the Netherlands; and Düsseldorf in Germany.
“The sale of our Value Fund V portfolio completes our most ambitious logistics property investment program over the past 20 years,” said Franz Colloredo-Mansfeld, chairman and chief executive officer of Cabot. “This portfolio was created through 90 transactions, including 24 development projects throughout the U.S., U.K and Europe completed over the past five years.”
Launched in 2016, Value Fund V is part of Cabot’s flagship fund series and was created through single and smaller transactions, including ground-up developments, with a focus on last-mile locations. The portfolio’s average vintage is less than 15 years and is leased to a “diverse group” of tenants, including “leading eCommerce companies.”
“The logistics sector continues to benefit from strong tailwinds driven by e-commerce,” said David Levine, senior managing director in Blackstone Real Estate. “We are excited to expand our relationship with Cabot and continue to grow our global logistics portfolio. These high-quality, stabilized assets are perfectly suited for our Core+ vehicles given their strong locations, stable cash flows and long-term growth potential.”
Cabot Properties is an international private equity real estate firm focused on the logistics sector.
Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised $40.6 billion in three public offerings as of October 2021. The REIT’s portfolio includes $61.1 billion of real estate investments and $7.7 billion of real estate debt.