Blackstone REIT Buys Stake in $1.6 Billion LBA Industrial Portfolio
Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has purchased a 60 percent stake in two industrial portfolios owned by LBA Logistics.
Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has purchased a 60 percent stake in two industrial portfolios owned by LBA Logistics comprising $1.6 billion of gross value. LBA’s investment fund and its investors will retain the remaining 40 percent balance.
The portfolios include 71 assets totaling 9.5 million square feet that are approximately 95 percent occupied. The assets are located predominantly in last-mile locations in West Coast markets, with the majority in California and Seattle.
“Logistics is one of our highest conviction investment themes globally, and this acquisition illustrates BREIT’s continued momentum executing on exciting opportunities with significant growth potential,” said Brian Kim, Blackstone REIT’s head of acquisitions and capital markets.
Following the close of the transaction, more than 90 percent of Blackstone REIT’s real estate investments will be in multifamily, industrial, and net leased assets, with industrial representing more than 35 percent of their portfolio.
In other company news, the REIT recently updated its per share net asset values for December 2020 and added two new directors.
Blackstone Real Estate Income Trust originally registered $5 billion in shares and accepted gross offering proceeds of $4.9 billion from January 1, 2017 to January 1, 2019. The company later registered a $12 billion follow-on offering, and as of mid-January 2021, had received $10.2 billion in investor proceeds.
As of December 31, 2020, the REIT owned a property portfolio valued at roughly $37.7 billion and had positions in real estate-related securities and loans totaling $4.6 billion. The company invests in multifamily, industrial, hotel, and retail properties, and real estate-related securities and loans.
